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OF  THE 
UNIVERSITY 
OF 


INDUSTRIAL  ACCIDENT  BOARD 

Of  TN£ 
STAT£  OF  CAllfORNfA 


State  of'  Pennsylvania 


REPORT 


OF 


Industrial  Accidents 

1    .   ii *•*" 

Commission 


1912 


4>/  THB  v 

UNIV^RiJTV 
OF 


INDEX. 


PACK 

REPORT 1 

The  Factory  Act 2 

Hours  of  Labor  for  Women 3 

Reports  of  Accidents 4 

Workman's  Compensation 4 

Employer's  Liability 5 

Compulsory  or  Elective  Insurance  Funds 6 

Compulsory  Compensation  by  Employer  to  Employee 9 

"  Elective  "  Compensation  by  Employer  to  Employee 10 

Recommendation  of  Elective  Act 12 

Mutual  Insurance  Associations 13 

Insolvency  of  Insured  Employers 14 

Necessity  of  Another  Commission 15 

The  Commission's  Procedure , 15 

EXHIBIT  "A":— 

Act  Amending  the  Factory  Act  of  1905 17 

EXHIBIT  "B":— 

Act  Requiring  Employers  to  Make  Reports  of  Accidents 20 

EXHIBIT  "C":— 

Joint  Resolution  Amending   Section  21   of  Article  3  of  the 

Constitution  of  Pennsylvania 21 

EXHIBIT  "D":— 

Workmen's  Compensation  Law 23 

EXHIBIT  "E":— 

Act  Providing  for  the  Incorporation  and   Regulation  of  Em- 
ployers' Mutual  Insurance  Associations 43 

EXHIBIT  "F": — 

Act  Regulating  Policies  of  Insurance 52 

EXHIBIT  "G":— 

Act  Authorizing  the  Appointment  of  an  Industrial  Accidents 

Commission 54 


STATE  OF  PENNSYLVANIA 


REPORT        'X 


OF 


INDUSTRIAL  ACCIDENTS 
COMMISSION 


1912 


DAVID  A.  REED,  Chairman,  FRANCIS  FEEHAN, 

Pittsburgh.  Pittsburgh. 

J.  B.  COLAHAN,  JR.,  GEORGE  C.  HETZEL, 

Philadelphia.  Chester. 

JOHN  J.  GUSHING,  MORRIS  WILLIAMS, 

Monessen.  Philadelphia. 

FRANCIS  H.  BOHLEN,  Secretary, 

34th  and  Chestnut  Streets, 

PhUadelphia, 


PRESS  OP 

ALLEN,  LANE   &   SCOTT, 
PHILADELPHIA 


Z/7W 


D  e  ft. 
-  31.  J&12- 


HARRISBURG,  PA.,  December 

To  His  Excellency,  John  K.  Tener,  Governor  of  the  Com- 
monwealth of  Pennsylvania: 

SIR  : — The  Industrial  Accidents  Commission,  appointed  in 
pursuance  of  the  provisions  of  the  Act  of  June  14,  1911, 
P.  L.  917,  respectfully  makes  report  to  you,  for  transmis- 
sion to  the  General  Assembly  as  provided  in  that  Act : 

Two  subjects  of  investigation  were  prescribed  for  us, — 
the  prevention  of  industrial  accidents,  and  the  compensa- 
tion of  injured  workmen  and  their  dependents. 

The  original  compilation  by  this  Commission  of  statis- 
tics showing  the  causes  of  accidents  in  the  many  different 
industries  of  Pennsylvania  has  been  neither  necessary  nor 
possible.  To  prepare  a  set  of  such  statistics,  complete 
enough  to  be  reliable,  would  have  required  more  time,  more 
authority  and  more  funds  than  have  been  given  our  Commis- 
sion. Furthermore,  it  would  have  been,  in  the  main,  a  mere 
duplication  of  the  data  which  for  years  past  has  been  gath- 
ered and  digested  by  the  Department  of  Factory  Inspection, 
all  of  which  has  been  freely  offered  for  our  use  and  has  been 
extremely  valuable  to  us.  We  are  greatly  assisted  also  by 
having  the  information  collected  in  this  country  and  abroad 
during  the  past  decade  by  many  other  authorities,  both  pub- 
lic and  private,  for  there  is  no  radical  difference  between 
the  industrial  accidents  of  Pennsylvania  and  those  of  our 
neighboring  States. 

It  may  be  stated,  with  fair  exactness,  that  twenty  per  cent, 
of  all  factory  accidents  are  primarily  due  to  the  negligence 
of  the  employer,  or  of  those  representing  him  in  positions 
of  superintendence;  that  twenty-five  per  cent,  are  chiefly 
due  to  the  negligence  of  the  injured  man  himself;  that 
twenty  per  cent,  are  due  to  the  negligence  of  a  co-employee 
of  the  injured  man;  while  thirty-five  per  cent,  are  due  to 
what  may  be  called  the  hazard  of  the  industry.  Each  exten- 
sion of  the  duties  of  the  employer,  however,  tends  to  dimin- 
ish this  last  group  and  to  increase  the  first  group  of  acci- 


,  M633821 


2  Report. 

dents  chargeable  to  the  employee's  negligence.  Under  our 
present  system  of  compensation  for  such  injuries,  an  acci- 
dent of  the  first  of  these  classes  alone  furnishes  a  right  of 
action  against  the  employer,  and,  even  then,  the  action  may 
be  defeated  by  the  defenses  of  contributory  negligence  or  of 
assumption  of  risk.  From  statistics  of  all  kinds,  from  a 
comparison  of  the  records  of  our  Courts  of  Common  Pleas 
with  the  records  of  our  Factory  Inspection  Department,  and 
from  our  actual  experience  with  cases  of  this  character,  we 
can  assert  with  entire  confidence  that  in  less  than  five  per 
cent,  of  the  industrial  accidents  in  this  State  is  a  substan- 
tial sum  (i.  e.,  as  much  as  medical  expenses  and  actual  wages 
lost)  recovered  by  the  injured  man  or  his  dependents.  It 
will  be  seen  at  once  that  the  pecuniary  advantage  to  the 
employer  of  a  decrease  in  the  number  of  accidents  is  hardly 
great  enough  to  furnish  a  powerful  incentive  to  the  intro- 
duction of  safety  appliances.  The  factory  law,  with  its 
threat  of  punishment  for  non-compliance,  furnishes  a 
stronger  incentive.  We  believe,  however,  that  no  "Factory 
Act"  can  do  as  much  towards  the  prevention  of  accidents  as 
a  system  that  will  make  it  directly  and  immediately  expen- 
sive to  the  employer  to  be  careless  of  the  safety  of  his  work- 
men. This  should  be  borne  in  mind  in  weighing  the  relative 
advantages  of  the  different  systems  of  workmen's  compensa- 
tion,— a  subject  mentioned  later  in  this  report. 

THE  FACTORY  ACT. 

We  find  in  force  in  Pennsylvania,  in  the  Act  of  May  2, 
1905,  P.  L.  352,  a  Factory  Act  similar  in  its  terms  to  those 
of  most  of  the  important  manufacturing  States  of  this  coun- 
try. We  have  sought  from  every  source  criticisms  of  the 
provisions  of  this  law,  having  begun  our  task  with  the  im- 
pression that  this  could  be  strengthened  and  added  to  with 
promptly  beneficial  results,  but  we  are  now  agreed  that  little 
change  is  required  in  the  language  of  the  law.  What  is 
required  is  its  continued  and  vigilant  enforcement.  Some- 
thing was  accomplished  under  the  old  Factory  Act  of  1899, 
much  under  the  present  law,  and  much  yet  remains  to  be 


Report.  3 

done.  It  is  a  matter  of  efficient  administration  rather  than 
of  legislation.  In  some  of  the  industrial  plants  that  we  have 
visited  we  have  seen  frequent  instances  of  non-compliance 
with  the  Act,  but  this  fact  is  not  necessarily  indicative  of 
inefficiency  in  the  Department  of  Factory  Inspection,  nor  of 
disregard  of  the  law  on  the  part  of  the  employers.  It  may 
show  only  the  magnitude  of  the  changes  required  by  the  ex- 
isting law  and  the  impossibility  of  complying  with  them  all 
up  to  the  present  time.  We  believe,  however,  that  the  De- 
partment of  Factory  Inspection  should  adopt  more  strin- 
gent measures  to  compel  compliance  with  that  part  of  the  law 
(Section  n)  that  requires  the  guarding  of  machinery,  and 
we  believe  that  the  passage  of  an  adequate  compensation  law 
for  injured  workmen  will  materially  assist  the  Department 
in  this  direction. 

The  Factory  Act  seems  to  us  to  require  amendment  in 
its  definition  of  the  kind  of  establishments  covered  by  it. 
The  administration  of  the  Act  has  been  affected  by  the 
vagueness  of  the  definition  given  in  Section  i,  and  the  nar- 
row construction  put  upon  that  section  has  seriously  re- 
stricted the  operations  of  the  Department  of  Factory  In- 
spection. For  this  reason,  we  recommend  the  change  in 
that  section  shown  in  the  proposed  Act  appended  to  this  re- 
port as  Exhibit  "A,"  page  17. 

HOURS  OF  LABOR  FOR  WOMEN. 

A  fertile  cause  of  accidents,  recognized  by  every  authority 
upon  the  subject,  is  overwork, — i.  e.,  excessive  hours  of 
labor.  Many  accidents,  which  in  statistical  tables  are  as- 
cribed to  the  negligence  of  the  injured  workman  himself,  are 
in  reality  due  entirely  to  overwork.  And  this  is  particu- 
larly true  of  women,  whose  incapacity  for  long-continued 
toil,  particularly  at  periods  of  illness,  is  strikingly  shown  by 
these  statistical  reports.  The  Factory  Act  of  1905  (Section 
3)  limits  the  hours  of  labor  of  women  to  twelve  hours  per 
day  and  sixty  hours  per  week.  This  provision  is  not  suffi- 
ciently restrictive.  No  other  important  manufacturing 
State  allows  women  to  be  employed  in  factories  for  such 


4  Report. 

long  hours  as  these.  In  Ohio  the  limitations  are  10  hours 
per  day  and  54  hours  per  week,  in  New  York  10  hours  per 
day  and  54  hours  per  week,  in  New  Jersey  55  hours  per 
week,  in  Maryland  10  hours  per  day,  in  Massachusetts  10 
hours  per  day  and  54  hours  per  week,  in  Connecticut  10  and 
58,  and  in  Illinois  10  hours  per  day.  We  feel  that  we  do  no 
injustice  to  the  industries  of  our  State  in  recommending,  as 
we  do  in  Exhibit  "A,"  the  reduction  of  the  limitation  of 
hours  of  labor  for  women  in  industrial  establishments  to 
10  hours  per  day  and  54  hours  per  week,  but  in  view  of  the 
law  in  this  State  up  to  the  present,  and  in  view  of  the  laws 
now  obtaining  in  other  States,  industrially  competitive  with 
Pennsylvania,  we  believe  that  this  reduction  is  all  that  is 
proper  at  this  time. 

REPORTS  OF  ACCIDENTS. 

Undoubtedly  further  preventive  measures  will  in  the 
future  be  found  to  be  desirable,  and  to  this  end  the  study  of 
the  subject  should  be  continued.  We  have  already  in  our 
Bureau  of  Industrial  Statistics  an  organization  equipped  for 
the  compilation  of  the  necessary  data,  and  it  is  plain  that 
information,  promptly  reported  to  it  after  each  accident, 
will  in  time  furnish  a  basis  for  legislation  far  more  accurate 
and  complete,  and  at  far  less  expense  to  the  State,  than  the 
incomplete  returns  obtainable  by  circular  inquiries  issued 
during  a  short  interval  by  a  commission  such  as  ours.  It 
will  be  much  easier  to  observe  the  effect  of  any  compensation 
law  adopted  by  the  legislature  if  such  prompt  and  complete 
reports  are  made  by  the  employer.  The  reliability  of  such 
reports  will  be  increased  if  the  employers  making  them  may 
do  so  without  fear  of  their  production  in  evidence  in  any 
litigation.  For  these  reasons  we  recommend  the  proposed 
law  attached  hereto  as  Exhibit  "B,"  page  20. 

WORKMAN'S  COMPENSATION. 

The  compensation  of  injured  workmen  is  a  subject  that 
has  received  exhaustive  study  in  every  civilized  country; 
and  within  the  past  decade  the  current  of  public  opinion 


Report.  5 

in  favor  of  such  compensation  has  become  so  strong-  that 
no  argument  in  its  favor  is  necessary.  To  contend  for 
the  continuance  of  the  old  common-law  system  is  futile. 
That  the  injured  workman  should  be  made  whole  at  the 
expense  of  the  industry  seems  now  as  indisputably  right 
as  that  the  industry  should  bear  the  expense  of  repairing 
a  broken  machine.  On  the  other  hand,  the  subject  of  a 
just  and  equitable  compensation  is  rendered  so  difficult 
by  constitutional  limitations,  and  is  necessarily  a  matter 
of  such  delicate  adjustment,  that  to  permit  it  to  be  con- 
trolled by  sentimental  or  demagogic  considerations  is  to 
invite  the  total  failure  of  the  effort.  The  varied  experi- 
ence of  our  ten  sister  States  that  have  adopted  laws  on 
this  subject  shows  that  ignorance  or  insincerity  cannot 
be  permitted  to  interfere  if  a  just  and  useful  result  is  to 
be  attained.  Important  everywhere,  in  Pennsylvania  the 
subject  is  of  extreme  importance,  because  of  the  industrial 
leadership  of  our  State.  So  many  persons  and  so  much 
property  are  involved  that  to  attempt  a  reckless  experi- 
ment in  this  matter  would  be  a  grave  moral  and  economic 
offense. 

Four  general  systems  of  compensation  for  injured 
workmen  have  been  tried  at  various  times  and  in  various 
countries.  They  are: 

(a.)  Employer's  Liability,  based  on  fault. 

(b.)  Compulsory  or  Elective  Insurance  Funds. 

(c.)  Compulsory  Compensation  by  Employer  to  Em- 
ployee. 

(d.)  "Elective"  Compensation  by  Employer  to  Em- 
ployee. 

Our  views  as  to  each  of  these  methods  and  their  avail- 
ability in  Pennsylvania  are  summarized  as  follows : 

EMPLOYER'S  LIABILITY. 

This  means  the  present  system  of  the  common  law,  with 
such  statutory  modification  or  enlargement  of  the  right 
of  action  as  may  be  made  by  the  legislature.  However 
favorable  to  the  employee  such  new  legislation  may  be, 
this  system  will  always  be  open  to  many  objections.  These 


6  Report. 

are  so  well  recognized  that  mere  reference  to  them  will 
be  sufficient.  They  are  (i)  the  delay  while  the  case  is 
awaiting  trial  and  while  appeals  are  pending,  always  pre- 
venting relief  at  the  moment  of  the  workman's  greatest 
need;  (2)  the  technicality  inseparable  from  hard-fought 
litigation;  (3)  the  frequent  failure  of  cases  through  the 
employee's  inability  to  produce  "evidence  of  negligence ;" 
(4)  the  success  of  a  plaintiff  whose  conscience  and  whose 
counsel  permit  him  to  exaggerate  or  to  lie,  while  one 
more  scrupulous  will  be  defeated  in  a  case  quite  as  meri- 
torious in  fact;  (5)  the  bitterness  that  nearly  always  re- 
sults, to  the  injury  of  both  employer  and  employee;  (6) 
the  frequency  of  illogical  and  unjust  verdicts,  and  the 
possibility  of  corrupt  verdicts;  (7)  the  waste  of  litigation 
in  lawyers'  fees,  witnesses'  fees,  disturbance  of  business, 
and  expenses  of  preparation  for  trial — a  victory  for  the 
employer  often  costing  him  as  much  money  as  would  have 
quite  relieved  the  needs  of  the  employee;  and  (8)  the  ex- 
orbitant contingent  fees  often  charged  by  lawyers  rep- 
resenting the  employee.  It  is  no  exaggeration  to  say  that, 
under  this  system  as  now  applied  in  Pennsylvania,  not 
more  than  one-third  of  the  amount  spent  by  the  employer 
in  claim  department  outlay  ever  reaches  the  employee. 
The  balance  is  absorbed  in  transmission. 

We  believe  that  to  discuss  the  demerits  of  such  a  sys- 
tem would  be  superfluous.  It  has  brought  injustice,  suffer- 
ing and  discontent.  Its  disappearance  will  be  welcomed 
by  every  thinking  man. 

COMPULSORY  OR  ELECTIVE  INSURANCE  FUNDS. 

These  are  sometimes  administered  directly  by  the  State 
itself,  as  in  most  continental  European  countries  and  in 
the  States  of  Ohio  and  Washington,  and  sometimes  by 
private  associations  under  the  general  oversight  of  the 
State,  as  in  Germany  and  in  Massachusetts.  In  some 
cases  the  employees  themselves  are  required  to  contribute 
toward  such  funds.  Almost  invariably  the  payment  is 
made  directly  from  the  fund  to  the  injured  employee,  re- 
gardless of  any  question  of  negligence,  and  the  employer 


Report.  7 

is  relieved  of  all  personal  liability.  In  some  cases,  sub- 
scription to  the  insurance  fund  is  compulsory,  as  in  Wash- 
ington, while  in  others  it  is  optional  with  the  employer, 
as  in  Ohio. 

This  system  undoubtedly  has  the  advantage  of  securing 
the  payments  to  the  workman  entitled  to  compensation, 
and  this  element  of  security  deserves  to  be  borne  in  mind, 
but  the  system  is,  nevertheless,  open  to  serious  criticism. 
The  chief  objection  that  we  make  to  it  is  that  it  tends  to 
remove  the  incentive  to  vigilant  safety-work  on  the  part 
of  the  employer,  because  the  pecuniary  penalty  for  care- 
lessness falls,  not  directly  upon  him,  but  upon  a  fund  in 
which  his  interest  is  relatively  small.  We  feel  that  this 
incentive  to  be  careful  is  one  of  the  most  important  re- 
sults to  be  aimed  at  in  the  adoption  of  any  system.  In 
reply  to  this  argument  against  the  insurance  plan,  it  is  said 
that  the  insurance  premiums  should  and  would  be  in- 
creased for  careless  employers,  but  it  is  obvious  that  this 
punishment  will  always  be  remote  and  uncertain.  And 
where,  as  in  Ohio,  the  employee  is  required  to  pay  part 
of  the  insurance  premium,  it  is  also  obvious  that  he,  al- 
though perhaps  quite  blameless,  is  thus  forced  by  the 
increased  premium,  to  pay  a  part  of  the  penalty  for  his 
employer's  negligence. 

Many  of  these  insurance  funds  are  elaborate  in  their  ad- 
ministration, and  require  a  large  number  of  officials  to 
see  to  their  operation.  To  adopt  such  a  system  in  Penn- 
sylvania would  entail  the  creation  of  many  new  offices. 

Another  objection,  to  our  minds  important,  is  that  the 
fixing  of  premiums  must  of  necessity  be  largely  discre- 
tionary in  the  official  or  officials  in  charge  of  the  fund. 
In  no  other  way  can  the  careful  employer  be  protected 
and  the  careless  punished.  As  a  result,  the  opportunity 
for  administrative  favoritism,  for  unjust  assessment,  for 
irregularity  of  management  is  always  present.  Further- 
more, the  basic  idea  of  this  plan  is  a  compulsory  associa- 
tion among  all  employers  in  the  payment  of  compensa- 
tion, without  free  choice  of  associates.  It  is  opposed  to 
the  idea  of  individual  liberty  and  full  individual  responsi- 


8  Report. 

bility  that  underlies  the  whole  theory  of  our  government. 
The  fact  that  it  has  not  yet  in  any  State  in  America  proven 
successful  is,  in  our  minds,  a  powerful  argument  against 
it. 

A  compulsory  insurance  act  of  this  description,  modeled 
chiefly  upon  the  German  system,  has  been  drafted  and 
strongly  urged  upon  us  by  representaves  of  an  association 
of  employers.  We  are  earnestly  of  the  opinion  that  such 
an  act  should  not  be  recommended.  Disregarding  details  in 
which  we  think  the  act  as  submitted  is  defective,  but  which 
could  be  corrected,  we  believe  it  to  be  open  to  all  of  the 
fundamental  objections  stated  above,  and  to  grave  constitu- 
tional objections  as  well.  In  that  it  involves  a  delegation 
of  the  power  of  taxation,  we  are  of  the  opinion  that  it 
violates  Section  20  of  Article  III  of  the  State  Constitution. 
In  that  the  essence  of  the  proposed  act — the  key  of  its  suc- 
cess and  fairness — would  be  the  power  of  discriminating  in 
insurance  rates  between  individual  employers  according  to 
the  freest  discretion  and  judgment  of  the  rate-fixing  au- 
thority, we  are  of  the  opinion  that  it  would  violate  Section  i 
of  Article  IX  of  the  State  Constitution,  which  provides  that 
"all  taxes  shall  be  uniform  upon  the  same  class  of  subjects 
*  *  *  and  shall  be  levied  and  collected  under  general 
laws."  We  believe,  further,  that  the  proposed  system  would 
be  quite  unworkable  in  its  project  of  taxation  of  all  em- 
ployers of  one  or  more  persons — such  as  the  employers  of 
domestic  servants  and  of  farm  labor, — for  we  think  that 
the  cost  of  assessment  and  collection  of  the  small  premiums 
due  from  such  employers  would  exceed  the  premiums  them- 
selves. The  merits  of  such  a  scheme  should  be  very  great 
to  justify  the  creation  of  the  multitude  of  public  and  semi- 
public  positions  that  would  be  required  for  its  operation, 
but  it  is  notable  that,  while  its  only  merit  over  the  system 
that  we  propose  is  in  affording  an  increased  security  for 
the  compensation  payments,  no  representative  of  labor  has 
urged  its  adoption  instead  of  our  act.  Conceding  its  suc- 
cess in  Germany,  where  it  has  been  operated  in  connection 
with  a  system  of  sickness-insurance  and  old-age  pensions, 
we  firmly  believe  that  its  adoption  in  Pennsylvania  under 


Report.  9 

present  political  and  industrial  conditions  would  be  intoler- 
able to  the  employers  of  the  State.  At  best,  it  would  be  but 
an  experiment,  practically  untried  in  this  country,  and  we 
believe  that  the  welfare  of  too  many  workmen  and  too  much 
property  is  involved  to  warrant  the  imposition  of  an  ex- 
periment so  gigantic  upon  the  industries  of  Pennsylvania. 

We  are  agreed  that  the  disadvantages  of  the  insurance 
system  outweigh  its  advantages  over  the  two  remaining 
methods  now  to  be  discussed. 

COMPULSORY  COMPENSATION  BY  EMPLOYER  TO  EMPLOYEE. 

Under  this  system,  the  employer  is  required  to  pay  di- 
rectly to  the  injured  employee  or  his  dependents  compensa- 
tion for  injury  or  for  death,  regardless  of  any  fault  that 
may  have  led  to  the  accident.  As  in  the  insurance  fund 
plans,  the  amount  of  compensation  payable  is  so  regulated 
by  the  nature  of  the  injury,  the  duration  of  the  disability 
and  the  wages  of  the  injured  man  as  to  be  as  nearly  as 
possible  automatic  in  computation.  Certainty  and  prompt- 
ness of  payment  are  regarded  as  of  prime  importance.  Safe- 
guards for  security  of  the  payment  are  usually  provided, 
such  as  giving  them  the  same  preferred  lien  as  is  given  to 
wages. 

This  system  we  regard  as  unquestionably  the  best.  It 
places  the  penalty  for  dangerous  conditions  immediately 
upon  the  careless  employer,  while  its  rewards  for  vigilant 
care  are  prompt  and  certain.  Every  safety  device  that  may 
be  installed  means  a  direct  money  saving  to  the  employer. 
The  retention  of  an  employee  who  is  careless  of  the  safety 
of  his  fellows  means  a  direct  money  loss  to  the  employer. 
Under  this  system,  the  relationship  between  care  and  money- 
profit  is  plain  to  everyone,  and  the  interposition  of  no  prem- 
ium-assessing official  is  required. 

Three  laws  of  this  kind  deserve  study, — the  "Sutherland 
bill"  now  pending  in  the  Federal  Congress,  the  English 
Workmen's  Compensation  Laws  of  1897,  1900  and  1906, 
and  the  New  York  Hazardous  Employments  Act  of  1909. 
The  first  of  these  has  not  yet  gone  into  effect,  and  therefore 


io  Report. 

no  conclusions  can  be  drawn  from  its  operation,  but  it  is 
worth  noting  that  its  recommendation  by  the  Sutherland 
Commission  followed  a  most  exhaustive  study  of  the  sub- 
ject. Its  constitutionality  of  course  has  not  yet  been  settled, 
but  the  weight  of  legal  opinion  seems  to  be  in  favor  of  the 
validity  of  the  Act.  The  English  law  has  met  with  great 
success,  and  is  considered  by  all  interests  to  be  a  satisfactory 
system,  although  its  failure  to  provide  adequate  definitions 
of  the  terms  used  in  it  led  to  a  large  number  of  litigated 
cases  before  the  meaning  of  the  law  became  settled — a  diffi- 
culty not  peculiar  to  this  kind  of  legislation.  The  New  York 
Act  was  held  by  the  Court  of  Appeals  of  that  State  to  offend 
the  "due  process  of  law"  clause  of  the  State  Constitution, 
in  that  it  required  payments  by  the  employer  where  he 
neither  was  at  fault  nor  had  agreed  to  pay.  (Ives  vs.  South 
Buffalo  Ry.  Co.,  201  N.  Y.,  271.)  This  decision  has  pro- 
voked a  storm  of  discussion  and  criticism,  and  it  is  seemingly 
irreconcilable  with  recent  decisions  of  the  courts  of  last 
resort  in  Montana  and  Washington.  (Cunningham  vs. 
Imp.  Co.,  44  Mont.,  180;  State  vs.  Clausen,  65  Wash.,  156.) 
But  we  need  not  enter  into  this  controversy,  for  the  pro- 
visions of  our  own  State  Constitution,  as  they  now  stand, 
leave  no  doubt  of  the  impossibility  of  sustaining  such  a  law. 
Section  21  of  Article  III  of  our  Constitution,  which  pro- 
hibits the  General  Assembly  from  limiting  the  damages  re- 
coverable for  injury  or  death,  certainly  would  prohibit  a  law 
whose  essential  feature  is  the  exact  fixing  of  compensation 
and  the  establishment  of  the  maximum  and  minimum  limits 
of  the  payments. 

The  unquestionable  desirability  of  such  a  law  leads  us 
to  recommend  the  proposed  amendment  of  Section  21 
of  Article  III  of  the  Constitution,  attached  hereto  as 
"Exhibit  C,"  page  21. 

In  the  meanwhile,  the  same  result  fortunately  can  be 
reached  in  most  cases  by  an  indirect  method  that  has 
proved  successful  in  several  other  States. 

"ELECTIVE"  COMPENSATION  BY  EMPLOYER  TO  EMPLOYEE. 

The  essential  idea  of  the  Acts  that  carry  out  this  plan 
is  as  follows :  The  Act  begins  by  enlarging  greatly  the 


Report.  1 1 

common-law  liability  of  the  employer.  It  then  sanctions 
an  agreement  between  employer  and  employee  for  the 
adoption  of  a  definite  compensation  plan,  applicable  to 
all  cases  regardless  of  fault,  and  provides  that  where 
such  agreement  is  in  effect  it  shall  wholly  supersede  the 
common  law.  The  acceptance  of  this  compensation  plan 
is  facilitated  by  a  provision  that  it  shall  be  presumed  to 
be  agreed  to  unless  expressly  rejected  by  either  em- 
ployer or  employee.  If  the  Act  is  intelligently  drawn, 
it  will  be  found  to  be  to  the  advantage  of  both  employer 
and  employee  to  accept  the  compensation  plan  rather  than 
to  remain  under  the  liability  law.  The  employer,  on  the 
one  hand,  is  saved  the  tremendous  expense  of  litigation 
under  the  common  law,  the  delays  and  time  losses 
incident  thereto,  the  maintenance  of  an  elaborate  claim 
department,  the  danger  of  excessive  verdicts  and  the 
disturbance  of  business  that  frequently  accompanies  a 
long  trial  in  court.  He  finds  that  he  can  secure  insur- 
ance against  his  liability  under  the  "compensation  sec- 
tion" as  cheaply  or  more  cheaply  than  under  the  "liability 
section"  of  the  law,  although  such  insurance  ordinarily 
protects  him  against  "liability"  verdicts  only  up  to  $5,000, 
while  it  protects  him  against  every  cent  of  "compensa- 
tion" payments  under  the  proposed  Act.  On  the  other 
hand,  the  employee's  reasons  for  acceptance  of  the  com- 
pensation plan  are  quite  as  strong.  He,  or  his  family  if 
he  is  killed,  is  protected  with  certainty,  and  is  not  sub- 
ject to  defeat  on  some  abstruse  technicality.  The  pay- 
ments, though  moderate  in  amount,  begin  almost  at  once 
and  continue  regularly,  as  against  a  possible  large  ver- 
dict received  some  time  in  the  distant  future,  long  after 
the  distress  was  most  acute.  The  procedure  in  case  of 
disagreement  is  simple  and  prompt,  and  lawyers'  fees 
are  subject  to  the  control  of  the  court,  insuring  modera- 
tion. It  requires  the  creation  of  no  new  tribunals,  but 
utilizes  those  in  existence,  thus  avoiding  increased  ex- 
penses and  making  use  of  existing  experience  and  skill. 

In  one  of  the  States  where  this  plan  has  been  tried,  its 
success  may  be  gauged  by  the  fact  that,  although  the  Act 


12  Report. 

has  been  in  force  for  a  year,  only  three  employers  are 
known  to  have  rejected  the  "compensation  section." 
And  its  effect  can  be  gauged  by  the  further  fact  that,  out 
of  more  than  two  thousand  reported  cases  during  the 
first  six  months  of  its  operation,  only  ten  were  taken  into 
court,  most  of  the  latter  being  simple  applications 
for  a  commutation  of  payments  in  a  lump  sum  instead  of 
periodical  installments,  while  several  of  the  other  con- 
troversies could  have  been  avoided  by  the  inclusion  in 
the  Act  itself  of  carefully  drawn  definitions  of  its  terms. 

In  another  State  where  the  same  plan  was  resorted  to, 
its  operation  was  ruined  by  ignorant  treatment  of  the 
compensation  schedule.  In  a  misguided  effort  to  be  "lib- 
eral," the  compensation  plan  was  made  so  severe  as  to  cost 
in  operation  nearly  three  times  as  much  as  the  "liability 
section,"  with  the  natural  result  that  practically  every 
employer  in  the  State  in  question  rejected  the  plan,  leav- 
ing the  liability  law  in  force  with  all  its  inherent  evils. 

As  to  the  constitutionality  of  the  Acts  of  this  sort, 
we  feel  the  greatest  confidence.  The  objections  that 
were  used  to  defeat  the  Hazardous  Employments  Act 
in  New  York  have  no  application  to  Acts  of  the  elective 
type.  The  decisions  in  other  States  upon  the  "elective" 
Acts  have  been  in  favor  of  their  validity  (Sexton  vs.  New- 
ark Dist.  Tel.  Co.,  N.  J.  Law  Journal,  Vol.  34,  page  368, 
and  Vol.  35,  page  8;  Borgnis  vs.  Falk  Co.,  147  Wis.,  327; 
Opinion  of  Justices,  209  Mass.,  607;  State  vs.  Creamer, 
85  Ohio  St.,  349),  and  this  is  also  the  opinion  given  in 
the  communications  which  we  have  received  from  many 
of  the  ablest  lawyers  of  the  State. 

RECOMMENDATION  OF  ELECTIVE  ACT. 

For  these  reasons  we  have  drafted,  and  now  recom- 
mend for  passage  by  the  Legislature,  the  form  of  Work- 
men's Compensation  Law  appended  hereto  as  "Exhibit 
D,"  page  23. 

In  the  preparation  of  this  bill,  we  have  <ried  to  adopt 
the  best  features  of  the  laws  of  the  same  kind  in  other 


Report.  13 

States  and  countries;  but,  with  a  view  :o  the  prevention 
of  controversies  and  litigation,  we  have  gone  further 
than  any  other  Act  in  the  definition  of  the  terms  used. 
In  most  cases,  if  the  experience  of  other  States  may  be 
relied  upon,  the  Act  will  be  found  to  be  automatic  in  op- 
eration, and  unless  our  precautions  are  futile  the  opera- 
tion of  the  law  ought  not  to  be  hindered  by  the  uncer- 
tainties that  marred  the  early  years  of  the  English  law. 
The  schedule  of  compensation  has  been  prepared  with 
the  utmost  care,  and,  while  it  is  more  liberal  in  its  allow- 
ance of  compensation  for  serious  permanent  injuries 
than  many  similar  laws, — that  of  New  Jersey,  for  ex- 
ample,— this  feature  is  balanced  by  restricting  the  allow- 
ance for  medical  attention  to  a  sum  more  nearly  com- 
mensurate with  the  ordinary  cost  of  such  attention.  We 
have  tried  in  this  way  to  give  directly  to  the  injured  man 
what  under  some  laws  is  found  to  go  to  his  medical  at- 
tendants in  excessive  fees.  Similarly  it  will  be  seen  that 
we  have  endeavored  to  prevent  the  extortion  of  excessive 
fees  for  legal  services  when  these  are  required  by  the 
employee. 

MUTUAL  INSURANCE  ASSOCIATIONS. 

The  natural  effect  of  such  legislation  as  we  have  recom- 
mended will  of  course  be  to  increase  the  demand  for  liability 
insurance,  and  it  would  be  unwise  to  allow  this  business  to 
be  monopolized  and  the  rates  for  it  to  be  wholly  controlled 
by  the  existing  stock  companies.  The  present  laws  of  Penn- 
sylvania authorize  the  creation  of  mutual  insurance  asso- 
ciations of  all  other  descriptions, — life,  fire,  accident,  cattle, 
plate  glass  and  what  not, — but  no  provision  has  been  made 
for  the  creation  of  mutual  associations  for  employers'  lia- 
bility insurance.  For  this  reason  we  have  drafted,  and 
append  hereto  as  Exhibit  "E,"  page  43,  a  law  allowing 
the  formation  of  such  associations  to  insure  against  liability 
of  employers  for  the  compensation  fixed  in  Article  II  of  the 
Workmen's  Compensation  Law.  Such  associations  ought 
not,  we  think,  to  be  permitted  to  gamble  on  "liability"  ver- 


14  Report. 

diets,  and  for  this  reason  we  have  restricted  their  field  of 
operation  to  the  compensation  section  alone.  Remembering 
still  that  the  prime  object  of  all  of  this  legislation  is  the 
prevention  of  accidents,  we  have  given  such  associations 
broad  powers  in  the  adoption  and  enforcement  of  safety 
regulations.  We  have  also  provided  for  them  the  same  pre- 
cautions to  preserve  their  assets  and  assure  their  solvency 
as  have  been  provided  for  stock  companies  doing  similar 
business. 

INSOLVENCY  OF  INSURED  EMPLOYERS. 

In  the  past  it  has  sometimes  been  found  that  the  insolvency 
of  an  employer  has  prevented  the  recovery  of  damages  by 
an  injured  employee,  although  the  employer  may  have  car- 
ried insurance  in  a  solvent  company.  The  liability  of  the 
insurance  company  being  to  the  employer  only,  and  not 
to  the  employee,  the  latter  has  had  no  remedy  for  this  state 
of  affairs.  We  learn,  however,  by  the  testimony  of  several 
insurance  experts  who  have  appeared  before  us,  that  this 
possible  excuse  for  non-payment  is  not  considered  in  the  fix- 
ing of  insurance, rates.  We  therefore  recommend,  in  Ex- 
hibit "F,"  page  52,  a  law  requiring,  in  all  such  insurance 
policies  against  workman's  compensation,  a  covenant  by  the 
insurer  to  pay  the  employee  directly  should  the  employer 
default.  This  law  will  not  increase  the  employer's  premi- 
ums, will  do  no  injustice  to  the  insurer,  and  will  afford  to  the 
worker  a  protection  to  which  he  is  entitled. 

Another  objectionable  feature  of  our  present  system  of 
employers'  liability  insurance  is  the  custom  of  limiting  the 
insurer's  obligation  in  the  case  of  a  single  accident  or 
group  of  accidents,  yet  it  is  not  customary  for  the  insurance 
companies  in  fixing  rates  to  make  any  allowance  in  return 
for  this  limitation.  Hence,  if  a  catastrophe  occurs,  the  em- 
ployer is  deprived  of  the  protection  of  his  insurance  just 
at  the  moment  when  he  needs  it  most.  We  therefore  have 
included  in  Exhibit  "F"  a  section  prohibiting  such  limita- 
tions. 


Report.  15 

NECESSITY  OF  ANOTHER  COMMISSION. 

If  the  legislature  shall  see  fit  to  adopt  our  recommenda- 
tions, by  the  passage  of  the  bills  that  accompany  this  report, 
we  believe  that  it  will  be  of  great  advantage  to  have  the 
operation  of  those  laws  carefully  studied  by  a  commission 
during  the  following  two  years.  If  any  modifications  of 
this  legislation  should  prove  necessary,  they  probably  will 
best  be  framed  by  such  a  body.  We  therefore  recommend, 
in  the  bill  attached  hereto  as  Exhibit  "G,"  page  54,  the 
creation  of  a  commission  of  seven,  made  up  of  representa- 
tives of  the  same  interests  as  are  represented  in  our  com- 
mission. 

THE  COMMISSION'S  PROCEDURE. 

Before  the  preparation  of  any  of  these  bills  was  com- 
menced, the  Commission  held  public  hearings  in  Har- 
risburg,  Philadelphia  and  Pittsburgh,  at  which  all  persons 
interested  were  urged  to  appear  and  present  their  views, 
since  it  was  our  desire  to  learn  the  general  public  sentiment 
on  the  subjects  of  our  work.  The  recognition  of  the  need 
for  new  legislation  was  very  apparent  and  very  general, 
but  the  details  by  which  the  desired  result  was  to  be  reached 
had  not  been  the  subject  of  much  general  consideration. 
The  Commission  then,  for  its  own  instruction,  particularly 
in  the  matter  of  accident  prevention,  visited  and  inspected 
a  number  of  representative  manufacturing  plants  in  differ- 
ent parts  of  the  State,  including  a  textile  factory,  a  ship- 
yard, a  coal  mine,  an  engine-building  plant  and  several  iron 
furnaces  and  steel  works.  Frequent  executive  sessions 
were  then  held,  during  which  the  laws  considered  necessary 
were  drawn,  discussed  and  revised.  These  Acts  were  then 
in  every  instance  published  in  tentative  form  as  soon  as  they 
had  been  approved  by  the  Commission,  and  thousands  of 
copies  were  distributed  on  applications  made  to  the  Com- 
mission. 

After  a  sufficient  time  had  elapsed  for  careful  considera- 
tion to  be  given  to  our  work,  we  again  held  public  hearings 
in  Harrisburg,  Philadelphia  and  Pittsburgh,  at  which  the 


1 6  Report. 

fullest  criticism  of  our  published  bills  was  invited.  These 
meetings  were  well  attended,  and  an  abundance  of  criticism 
was  forthcoming  both  by  the  speakers  at  our  hearings  and 
in  a  large  number  of  written  communications  received  by 
us;  but  to  our  great  satisfaction  it  was  found  that  in  the 
great  majority  of  instances  this  criticism  was  favorable  to 
our  work.  Many  suggestions  of  changes  in  detail  and 
phraseology  have  been  made  to  us,  and  such  of  them  as  we 
felt  would  lead  to  greater  fairness  or  certainty  have  been 
gladly  adopted.  But  it  has  been  gratifying  in  the  extreme 
to  find  that  the  proposed  legislation  has  met  with  the  hearti- 
est approval  of  employers  and  employees  alike,  as  well  as  of 
lawyers,  insurance  experts  and  economists. 

More  than  one- third  of  the  $15,000  appropriation  for  the 
expenses  of  the  Commission  remains  unused. 

From  you,  sir,  from  all  the  officers  of  your  administra- 
tion with  whom  we  have  come  in  contact,  from  the  mem- 
bers of  similar  commissions  in  several  other  States,  from 
associations  of  employers  and  employees  too  numerous  to 
mention,  from  insurance  companies  and  their  officers,  and 
from  many  public-spirited  members  of  the  bar,  we  have 
received  the  most  cordial  support  and  assistance  in  our 
work. 

You  have  given  us  an  unusual  opportunity  to  serve  our 
State.  Our  hope  is  that  the  work  that  has  been  done  will  be 
worthy  of  our  loyalty  to  her  and  our  pride  of  her. 

Respectfully  submitted, 

J.  B.  COLAHAN,  JR., 
JOHN  J.  GUSHING, 
FRANCIS  FEEHAN, 
GEO.  C.  HETZEL, 
MORRIS  WILLIAMS, 
FRANCIS  H.  BOHLEN, 
D.  A.  REED. 


I? 

EXHIBIT  "A." 

AN  ACT. 

Amending  an  Act  entitled  "An  Act  to  regulate  the 
employment,  in  all  kinds  of  industrial  establishments,  of 
women,  by  fixing  the  hours  of  labor  for  women;  to  provide 
for  the  safety  of  all  employees  in  all  industrial  establish- 
ments, and  of  men,  women,  and  children  in  school-houses, 
academies,  seminaries,  colleges,  hotels,  hospitals,  store- 
houses, office  buildings,  public  halls  and  places  of  amuse- 
ments, in  which  proper  fire-escapes,  exits  and  extinguish- 
ers are  required;  to  provide  for  the  health  of  all  em- 
ployees, and  of  men,  women,  and  children  in  all  such 
establishments,  storehouses  and  buildings  by  proper  sanitary 
appliances;  and  to  provide  for  the  appointment  of  inspec- 
tors, office  clerks  and  others,  who,  with  the  Chief  Factory 
Inspector,  to  enforce  the  same,  shall  constitute  the  Depart- 
ment of  Factory  Inspection,  to  enforce  the  same,  and  pro- 
vide penalties  for  violations  of  the  provisions  thereof;  fixing 
the  term  and  salaries  of  the  Chief  Factory  Inspector 
and  his  appointees,"  approved  the  second  day  of  May, 
Anno  Domini  one  thousand  nine  hundred  and  five,  de- 
fining the  terms  "industrial  establishment"  and  "estab- 
lishment" as  used  in  said  Act,  and  further  limiting  the 
hours  of  labor  for  women. 

SECTION  i.  Be  it  enacted,  etc.,  That  Section  i  of  an 
Act  entitled  "An  Act  to  regulate  the  employment,  in  all 
kinds  of  industrial  establishments,  of  women,  by  fixing 
the  hours  of  labor  for  women;  to  provide  for  the  safety 
of  all  employees  in  all  industrial  establishments,  and  of 
men,  women,  and  children  in  school-houses,  academies, 
seminaries,  colleges,  hotels,  hospitals,  store-houses,  office 
buildings,  public  halls  and  places  of  amusements,  in  which 
proper  fire-escapes,  exits  and  extinguishers  are  required 
to  provide  for  the  health  of  all  employees,  and  of  men, 
women,  and  children  in  all  such  establishments,  store- 
houses and  buildings  by  proper  sanitary  appliances,  and 
to  provide  for  the  appointment  of  inspectors,  office  clerks 
and  others,  who,  with  the  Chief  Factory  Inspector  shall 


1 8  Amendment  to  Factory  Law  of 

constitute  the  Department  of  Factory  Inspection  to  en- 
force the  same,  and  providing  penalties  for  violations  of 
the  provisions  thereof ;  fixing  the  term  and  salaries  of  the 
Chief  Factory  Inspector  and  his  appointees/'  approved 
the  second  day  of  May,  Anno  Domini  one  thousand  nine 
hundred  and  five,  which  reads  as  follows : 

"SECTION  i.  Be  it  enacted,  etc.,  That  the  term  'estab- 
lishment,' where  used  for  the  purpose  of  this  act,  shall 
mean  any  place  within  this  Commonwealth  other  than 
where  domestic,  coal  mining  or  farm  labor  is  employed; 
where  men,  women,  or  children  are  engaged  and  paid  a 
salary  or  wages  by  any  person,  firm  or  corporation,  and 
where  such  men,  women,  or  children  are  employees  in 
the  general  acceptance  of  the  term,"  be  and  the  same  is 
hereby  amended  to  read  as  follows : 

"SECTION  i.  Be  it  enacted,  etc.,  That  the  terms  'estab- 
lishment' and  'industrial  establishment'  wherever  used 
in  this  act  shall  not  include  a  home,  coal-mine,  farm,  hos- 
pital or  asylum  but  shall  include  ever)'-  other  place  within 
this  Commonwealth  where  men,  women,  or  children  are 
employed  in  manual  labor  by  any  person,  firm  or  cor- 
poration." 

SECTION  2.  That  Section  3  of  said  act,  which  reads 
as  follows : 

"SECTION  3.  No  minor  under  sixteen,  and  no  female, 
shall  be  employed  in  any  establishment  for  a  longer  period 
than  sixty  hours  in  any  one  week,  nor  for  a  longer  period 
than  twelve  hours  in  any  one  day.  No  minor  under  six- 
teen shall  be  employed  in  any  establishment  between  the 
hours  of  nine  post  meridian  and  six  ante  meridian:  Pro- 
vided, That  where  the  material  in  process  of  manufacture 
requires  the  application  of  manual  labor  for  an  extended 
period  after  nine  o'clock  post  meridian,  to  prevent  waste 
or  destruction  of  said  material,  male  minors  over  four- 
teen years  of  age,  and  who  have  not  been  employed  in  or 
about  such  establishment  between  the  hours  of  six  ante 


Amendment  to  Factory  Law  of  I9°5-  19 

meridian  and  nine  post  meridian,  may  be  employed,  for  not 
more  than  nine  consecutive  hours  in  any  one  day,  after 
nine  post  meridian :  And  provided  further,  That  in  estab- 
lishments where  night  work  is  hereby  permitted  to  prevent 
waste  or  destruction,  and  where  the  nature  of  the  em- 
ployment requires  two  or  more  working-shifts  in  the 
twenty-four  hours,  males  over  fourteen  years  of  age  may 
be  -employed,  partly  by  day  and  partly  by  night :  Provided, 
Said  employment  does  not  exceed  nine  consecutive  hours : 
And  provided  further,  That  retail  mercantile  establish- 
ments shall  be  exempt  from  the  provisions  of  this  section 
on  Saturday  of  each  week,  and  during  a  period  of  twenty 
days  beginning  with  the  fifth  day  of  December  and  end- 
ing with  the  twenty-fourth  day  of  the  same  month :  Pro- 
vided, That  during  the  said  twenty  days  preceding  the 
twenty-fourth  day  of  December,  the  working  hours  shall 
not  exceed  ten  hours  per  day,  or  sixty  hours  per  week ;" 
be  and  the  same  is  hereby  amended  to  read  as  follows : 

"SECTION  3.  No  minor  under  sixteen,  and  no  female, 
shall  be  employed  in  any  establishment  for  a  longer 
period  than  fifty-four  hours  in  any  one  week,  nor  for  a 
longer  period  than  ten  hours  in  any  one  day.  No  minor 
under  sixteen  shall  be  employed  in  any  establishment  be- 
tween the  hours  of  nine  post  meridian  and  six  ante 
meridian." 

SECTION  3.  That  all  acts  and  parts  of  acts  inconsistent 
herewith  are  hereby  repealed. 


20 

EXHIBIT    "B." 

AN   ACT 

REQUIRING  EMPLOYERS  TO  MAKE  REPORT  TO  THE  BUREAU 
OF  INDUSTRIAL  STATISTICS  OF  ACCIDENTS  TO  EMPLOYEES, 
AND  PRESCRIBING  A  PENALTY  FOR  NON-COMPLIANCE 
THEREWITH. 

SECTION  i.  Be  it  enacted,  etc.,  That  within  thirty  days 
after  the  beginning  of  the  disability  of  an  employee  because 
of  any  personal  injury  caused  by  an  accident  occurring  in 
the  course  of  his  employment,  the  employer,  whether  a 
person,  firm  or  corporation,  shall  make  report  of  such  ac- 
cident to  the  Bureau  of  Industrial  Statistics.  Such  re- 
port shall  set  forth  the  name,  address  and  nature  of 
business  of  the  employer;  name,  address,  sex,  age, 
nationality  and  occupation  of  the  employee;  date,  day  of 
week,  hour,  place  and  character  of  the  accident;  and  the 
nature  of  the  injury  and  the  duration  of  the  disability  or 
probable  disability,  as  far  as  the  same  can  be  ascertained. 
Such  employer  shall  also,  upon  request  of  the  Bureau  of 
Industrial  Statistics,  make  such  further  report  as  may  rea- 
sonably be  required  by  it. 

SECTION  2.  Any  person,  firm  or  corporation,  having 
knowledge  of  the  occurrence  of  such  personal  injury  to  an 
employee  in  the  course  of  employment,  who  shall  fail  to 
make  report  as  aforesaid,  shall  be  liable  to  the  Common- 
wealth for  a  penalty  of  one  hundred  dollars,  to  be  recov- 
erable by  action  brought  by  said  Bureau. 

SECTION  3.  Reports  made  in  accordance  with  this  act 
shall  not  be  evidence  against  the  employer  in  any  proceed- 
ing either  under  the  Workmen's  Compensation  Law  of 
1913  or  otherwise. 

SECTION  4.  No  employer  who  has  made  the  report  re- 
quired by  this  act  shall  be  required  to  make  any  other  or 
further  report  of  such  accident  to  any  other  department  of 
the.  government  of  the  Commonwealth. 

SECTION  5.  This  Act  shall  not  apply  to  casual  employ- 
ments, nor  to  accidents  resulting  in  disability  continuing 
less  than  two  days. 


21 

EXHIBIT  "C." 

A  JOINT  RESOLUTION. 

PROPOSING  AN  AMENDMENT  TO  SECTION  TWENTY-ONE  OF 
ARTICLE  THREE  OF  THE  CONSTITUTION  OF  PENNSYL- 
VANIA. 

SECTION  i.  Be  it  resolved  by  the  Senate  and  House 
of  Representatives  of  the  Commonwealth  of  Pennsyl- 
vania in  General  Assembly  met,  That  the  following 
amendment  to  the  Constitution  of  the  Commonwealth  of 
Pennsylvania  be  and  the  same  is  hereby  proposed  in  ac- 
cordance with  the  eighteenth  Article  thereof : — 

Amended  Section  Twenty-one,  Article  Three,  of  the 
Constitution  of  the  Commonwealth  of  Pennsylvania, 
which  reads  as  follows: 

"No  act  of  the  General  Assembly  shall  limit  the 
amount  to  be  recovered  for  injuries  resulting  in 
death,  or  for  injuries  to  persons  or  property;  and, 
in  case  of  death  from  such  injuries,  the  right  of 
action  shall  survive,  and  the  General  Assembly  shall 
prescribe  for  whose  benefit  such  actions  shall  be 
prosecuted.  No  act  shall  prescribe  any  limitations 
of  time  within  which  suits  may  be  brought  against 
corporations  for  injuries  to  persons  or  property,  or 
for  other  causes,  different  from  those  fixed  by  gen- 
eral laws  regulating  actions  against  natural  persons, 
and  such  acts  now  existing  are  avoided;" 

so  that  it  shall  read  as  follows : 

"The  General  Assembly  may  enact  laws  requiring 
the  payment  by  employers,  or  employers  and  em- 
ployees jointly,  of  reasonable  compensation  for  in- 
juries to  employees  arising  in  the  course  of  their 
employment  and  for  occupational  diseases  of  em- 
ployees, whether  or  not  such  injuries  or  diseases 
result  in  death,  and  regardless  of  fault  of  employer 


22  Constitutional  Amendment. 

or  employee,  and  fixing  the  basis  of  ascertainment  cf 
such  compensation  and  the  maximum  and  minimum 
limits  thereof,  and  providing  special  or  general 
remedies  for  the  collection  thereof;  but  in  no  other 
cases  shall  the  General  Assembly  limit  the  amount  to 
be  recovered  for  injuries  resulting  in  death,  or  for 
injuries  to  persons  or  property;  and,  i.i  case  of  death 
from  such  injuries,  the  right  of  action  shall  survive, 
and  the  General  Assembly  shall  prescribe  for  whose 
benefit  such  actions  shall  be  prosecuted.  No  act 
shall  prescribe  any  limitations  of  time  within  which 
suits  may  be  brought  against  corporations  for  in- 
juries to  persons  or  property,  or  for  other  causes, 
different  from  those  fixed  by  general  laws  regulating 
actions  against  natural  persons,  and  such  acts  now 
existing  arc  avoided." 


23 

EXHIBIT   "D." 

AN  ACT 

DEFINING  THE  LIABILITY  OF  AN  EMPLOYER  TO  PAY  DAM- 
AGES FOR  INJURIES  RECEIVED  BY  AN  EMPLOYEE  IN  THE 
COURSE  OF  EMPLOYMENT,  ESTABLISHING  AN  ELECTIVE 
SCHEDULE  OF  COMPENSATION  AND  REGULATING  PROCED- 
URE FOR  THE  DETERMINATION  OF  LIABILITY  AND  COM- 
PENSATION THEREUNDER. 

ARTICLE  I. 
Damages  by  Action  at  Law. 

SECTION  i.  Be  it  enacted,  etc.,  That  in  any  action 
brought  to  recover  damages  for  personal  injury  to  an  em- 
ployee in  the  course  of  his  employment,  or  for  death  result- 
ing from  such  injury,  it  shall  not  be  a  defense 

(a.)  That  the  injury  was  caused  in  whole  or  in  part  by 
the  negligence  of  a  fellow  employee,  or 

(&.)  That  the  employee  had  assumed  the  risk  of  the  in- 
jury, or 

(c.)  That  the  injury  was  caused  in  any  degree  by  the 
negligence  of  such  employee,  unless  it  be  established  that 
the  injury  was  caused  by  such  employee's  intoxication  or 
by  his  reckless  indifference  to  danger.  The  burden  of  prov- 
ing such  intoxication  or  reckless  indifference  to  danger 
shall  be  upon  the  defendant,  and  the  question  shall  be  one 
of  fact  to  be  determined  by  the  jury. 

SECTION  2.  The  employer  shall  be  liable  for  the  negli- 
gence of  all  employees,  while  acting  within  the  scope  of  their 
employment,  including  engineers,  chauffeurs,  miners,  mine- 
foremen,  fire-bosses,  mine  superintendents,  plumbers,  offi- 
cers of  vessels,  and  all  other  employees  licensed  by  the  State 
or  other  governmental  authority,  if  the  employer  be  allowed 
by  law  the  right  of  free  selection  of  such  employees  from  the 
class  of  persons  thus  licensed. 


24  Compensation  Law. 

SECTION  3.  An  employer,  who  permits  the  entry,  upon 
premises  occupied  by  him  or  under  his  control,  of  a  laborer 
or  an  assistant  hired  by  an  employee  or  contractor  for  the 
performance,  upon  such  premises,  of  a  part  of  the  employ- 
er's regular  business  entrusted  to  such  employee  or  con- 
tractor, shall  be  liable  to  such  laborer  or  assistant  in  the 
same  manner  and  to  the  same  extent  as  to  his  own  employee. 

SECTION  4.  No  agreement,  composition  or  release  of 
damages  made  before  the  happening  of  any  accident,  ex- 
cept the  agreement  defined  in  Article  II  of  this  act,  shall  be 
valid  or  shall  bar  a  claim  for  damages  for  the  injury  re- 
sulting therefrom,  and  any  such  agreement,  other  than  that 
defined  in  Article  II  herein,  is  declared  to  be  against  the 
public  policy  of  this  Commonwealth.  The  receipt  of  bene- 
fits from  any  association,  society  or  fund  to  which  the  em- 
ployee shall  have  been  a  contributor,  shall  not  bar  the  re- 
covery of  damages  by  action  at  law  nor  the  recovery  of 
compensation  under  Article  II  hereof ;  and  any  release  exe- 
cuted in  consideration  of  such  benefits  shall  be  void. 


ARTICLE  II. 
Elective  Compensation. 

SECTION  i.  When  employer  and  employee  shall  by  agree- 
ment, either  express  or  implied,  as  hereinafter  provided, 
accept  the  provisions  of  Article  II  of  this  act,  compensa- 
tion for  personal  injury  to  or  for  the  death  of  such  em- 
ployee by  an  accident  in  the  course  of  his  employment  shall 
be  made  in  all  cases  by  the  employer  without  regard  to  neg- 
ligence, according  to  the  schedule  contained  in  Sections  5 
and  6  of  this  Article;  provided  that  no  compensation  shall 
be  made  when  the  injury  or  death  be  intentionally  self-in- 
flicted, but  the  burden  of  proof  of  such  fact  shall  be  upon 
the  employer. 

The  terms  "injury"  and  "personal  injury/'  as  used  in 
this  Article,  shall  be  construed  to  mean  only  violence  to  the 


Compensation  Law.  25 

physical  structure  of  the  body,  and  such  disease  or  infec- 
tion as  naturally  results  therefrom;  and  wherever  death  is 
mentioned  as  a  cause  for  compensation  under  this  Article, 
it  shall  mean  only  death  resulting  from  such  violence  and 
its  resultant  effects  and  occurring  within  three  hundred 
weeks  after  the  accident.  The  term  "injury  by  an  accident 
in  the  course  of  his  employment,"  as  used  in  this  Article, 
shall  not  include  an  injury  caused  by  an  act  of  a  third  per- 
son intended  to  injure  the  employee  because  of  reasons  per- 
sonal to  him  and  not  directed  against  him  as  an  employee, 
or  because  of  his  employment,  but  shall  include  all  other 
injuries  sustained  while  the  employee  is  actually  engaged  in 
the  furtherance  of  the  business  or  affairs  of  the  employer, 
whether  upon  the  employer's  premises  or  elsewhere,  and 
shall  include  all  injuries  caused  by  the  condition  of  the 
premises  or  by  the  operation  of  the  employer's  business  or 
affairs  thereon  sustained  by  the  employee,  who  though  not 
so  engaged,  is  injured  upon  the  premises  occupied  by  or 
under  the  control  of  the  employer  or  upon  which  the  em- 
ployer's business  or  affairs  are  being  carried  on,  the  em- 
ployee's presence  thereon  being  required  by  the  nature  of 
his  employment. 

SECTION  2.  Such  agreement  shall  be  an  acceptance  of  all 
the  provisions  of  Article  II  of  this  Act,  and  shall  operate  as 
a  surrender  by  the  parties  thereto  of  their  rights  to  any 
form  or  amount  of  compensation  or  damage  for  any  injury 
or  death  occurring  in  the  course  of  the  employment,  or  to 
any  method  of  determination  thereof,  other  than  as  provided 
in  Article  II  of  this  Act.  Such  agreement  shall  bind  the 
employer  and  his  personal  representatives  and  the  employee, 
his  or  her  wife  or  husband,  widow  or  widower,  next  of  kin 
and  other  dependents. 

SECTION  3.  (a.)  In  every  contract  of  hiring  made  after 
June  30,  1913,  and  in  every  contract  of  hiring  renewed  or 
extended  by  mutual  assent,  expressed  or  implied,  after  said 
date,  it  shall  be  conclusively  presumed  that  the  parties  have 
accepted  the  provisions  of  Article  II  of  this  act,  and  have 


26  Compensation  Law. 

agreed  to  be  bound  thereby,  unless  there  be,  at  the  time  of 
the  making,  renewal  or  extension  of  such  contract,  an 
express  statement  in  writing  from  either  party  to  the  other 
that  the  provisions  of  Article  II  of  this  act  are  not  intended 
to  apply,  and  unless  a  true  copy  of  such  written  statement, 
accompanied  by  proof  of  service  thereof  upon  the  other 
party  setting  forth  under  oath  or  affirmation  the  time,  place 
and  manner  of  such  service,  be  filed  within  ten  days  after 
such  service  in  the  Bureau  of  Industrial  Statistics  of  this 
Commonwealth.  Every  contract  of  hiring,  oral,  written 
or  implied  from  circumstances,  now  in  operation  or  made 
or  implied  on  or  before  June  30,  1913,  shall  be  conclusively 
presumed  to  continue  subject  to  the  provisions  of  Article  II 
hereof,  unless  either  party  shall  on  or  before  June  30,  1913, 
in  writing  have  notified  the  other  party  to  such  contract  that 
the  provisions  of  Article  II  hereof  are  not  intended  to 
apply,  and  unless  there  shall  be  filed  in  the  Bureau  of 
Industrial  Statistics  a  true  copy  of  such  notice,  together 
with  proof  of  service,  within  the  time  and  in  the  manner 
hereinabove  prescribed;  provided,  however,  that  the  pro- 
visions of  this  Section  shall  not  be  so  construed  as  to  impair 
the  obligation  of  any  contract  now  in  force.  In  the  em- 
ployment of  minors,  Article  II  shall  be  presumed  to  apply, 
unless  the  said  written  notice  be  given  by  or  to  the  parent 
or  guardian  of  the  minor.  It  shall  not  be  lawful  for  any 
officer  or  agent  of  this  Commonwealth,  or  for  any  county, 
city,  borough  or  township  therein,  or  for  any  officer  or 
agent  thereof,  or  for  any  other  governmental  authority 
created  by  the  laws  of  this  Commonwealth,  to  give  such 
notice  of  rejection  of  the  provisions  of  this  Article  to  any 
employee  of  the  State  or  of  such  governmental  agency. 

(&.)  After  June  30,  1913,  an  employer,  who  permits  the 
entry,  upon  premises  occupied  by  him  or  under  his  control, 
of  a  laborer  or  an  assistant  hired  by  an  employee  or  con- 
tractor for  the  performance,  upon  such  premises,  of  a  part 
of  the  employer's  regular  business  entrusted  to  that  employee 
or  contractor,  shall  be  conclusively  presumed  to  have 
agreed  to  pay  to  such  laborer  or  assistant  compensation  in 


Compensation  Law.  27 

accordance  with  the  provisions  of  Article  II,  unless  the 
employer  shall  post,  in  a  conspicuous  place  upon  the  prem- 
ises where  the  laborer's  or  assistant's  work  is  done,  a  notice 
of  his  intention  not  to  pay  such  compensation,  and  unless 
there  be  filed  with  the  Bureau  of  Industrial  Statistics  within 
ten  days  thereafter  a  true  copy  of  such  notice,  together  with 
proof  of  the  posting  of  the  same,  setting  forth  upon  oath  or 
affirmation  the  time,  place  and  manner  of  such  posting;  and 
after  June  30,  1913,  any  such  laborer  or  assistant  who  shall 
enter  upon  premises  occupied  by  or  under  the  control  of  such 
employer  for  the  purpose  of  doing  such  work  shall  be  con- 
clusively presumed  to  have  agreed  to  accept  the  compensation 
provided  in  Article  II,  in  lieu  of  his  right  of  action  at  com- 
mon law  or  under  Article  I,  unless  he  shall  have  given  notice 
in  writing  to  the  employer,  at  the  time  of  entering  upon 
such  employer's  premises  for  the  purpose  of  doing  his  work, 
of  his  intention  not  to  accept  such  compensation,  and  unless 
within  ten  days  thereafter,  there  shall  have  been  filed  with 
the  Bureau  of  Industrial  Statistics  a  true  copy  of  such  notice 
accompanied  by  proof  of  service  thereof  upon  such  em- 
ployer, setting  forth  under  oath  or  affirmation  the  time,  place 
and  manner  of  such  service.  And  in  such  cases,  where 
Article  II  binds  such  employer  and  such  laborer  or  assistant, 
it  shall  not  be  in  effect  between  the  intermediate  employer  or 
contractor  and  such  laborer  or  assistant,  unless  otherwise 
expressly  agreed. 

SECTION  4.  The  contract  for  the  operation  of  the  pro- 
visions of  Article  II  of  this  act  may  be  terminated  prior 
to  any  accident  by  either  party  upon  sixty  days'  notice  to 
the  other  in  writing,  if  a  copy  of  such  notice,  with  proof  of 
service  be  filed  in  the  Bureau  of  Industrial  Statistics,  as 
provided  in  Section  3  of  this  Article. 

SECTION  5.  The  following  schedule  of  compensation  is 
hereby  established  for  injuries  resulting  in  disability : 

(a.)  For  the  first  three  hundred  weeks  after  the  four- 
teenth day  of  total  disability,  fifty  per  centum  of  the  wages 


28  Compensation  Law. 

received  at  the  time  of  injury,  but  the  compensation  shall 
not  be  more  than  ten  dollars  per  week  nor  less  than 
five  dollars  per  week;  provided  that,  if  at  the  time  of 
injury  the  employee  receives  wages  of  less  than  five 
dollars  per  week,  then  he  shall  receive  the  full  amount 
of  such  wages  per  week  as  compensation.  And  after  the  first 
three  hundred  weeks  of  total  disability,  for  the  remainder 
of  the  life  of  the  employee,  forty  per  centum  of  the  wages 
received  at  the  time  of  the  injury,  but  the  compensation 
shall  not  be  more  than  eight  dollars  per  week  nor  less  than 
four  dollars  per  week;  provided  that  if  at  the  time  of  the 
injury  the  employee  receive  wages  of  less  than  four  dollars 
per  week,  then  he  shall  receive  the  full  amount  of  such 
wages  as  compensation.  Nothing  in  this  clause  shall  require 
the  payment  of  compensation  after  disability  shall  cease. 
Should  partial  disability  be  followed  by  total  disability, 
the  period  of  three  hundred  weeks  mentioned  in  this  clause 
of  this  section  shall  be  reduced  by  the  number  of  weeks  dur- 
ing which  compensation  was  paid  for  such  partial  disability. 

(b.)  For  disability  partial  in  character  (except  the  par- 
ticular cases  mentioned  in  clause  (c.)),  fifty  per  centum  of 
the  difference  between  the  wages  received  at  the  time  of 
injury  and  the  earning  power  of  the  employee  thereafter; 
but  such  compensation  shall  not  be  more  than  ten  dollars 
per  week.  This  compensation  shall  be  paid  during  the 
period  of  such  partial  disability ;  not,  however,  beyond  three 
hundred  weeks  after  the  fourteenth  day  of  such  disability. 
Should  total  disability  be  followed  by  partial  disability,  the 
period  of  three  hundred  weeks  mentioned  in  this  clause 
shall  be  reduced  by  the  number  of  weeks  during  which 
compensation  was  paid  for  such  total  disability. 

(c.)  For  all  disability  resulting  from  permanent  inju- 
ries of  the  following  classes,  the  compensation  shall  be  ex- 
clusively as  follows: 

For  the  loss  of  a  hand,  fifty  per  centum  of  wages  during 
one  hundred  and  seventy-five  weeks. 

For  the  loss  of  an  arm,  fifty  per  centum  of  wages  during 
two  hundred  and  fifteen  weeks. 


Compensation  Law.  29 

For  the  loss  of  a  foot,  fifty  per  centum  of  wages  during 
one  hundred  and  fifty  weeks. 

For  the  loss  of  a  leg,  fifty  per  centum  of  wages  during 
two  hundred  and  fifteen  weeks. 

For  the  loss  of  an  eye,  fifty  per  centum  of  wages  during 
one  hundred  and  twenty-five  weeks. 

For  the  loss  of  any  two  or  more  of  such  members,  not 
constituting  total  disability,  fifty  per  centum  of  wages  dur- 
ing the  aggregate  of  the  periods  specified  for  each. 

The  loss  of  both  hands  or  both  arms,  or  both  feet,  or 
both  legs,  or  both  eyes  shall  constitute  total  disability,  to  be 
compensated  according  to  the  provisions  of  clause  (a.). 

Amputation  between  the  elbow  and  the  wrist  shall  be 
considered  as  the  equivalent  of  the  loss  of  a  hand,  and 
amputation  between  the  knee  and  ankle  shall  be  considered 
as  the  equivalent  of  the  loss  of  a  foot.  Amputation  at  or 
above  the  elbow  shall  be  considered  as  the  loss  of  an  arm, 
and  amputation  at  or  above  the  knee  shall  be  considered  as 
the  loss  of  a  leg.  Permanent  loss  of  the  use  of  a  hand,  arm, 
foot,  leg  or  eye  shall  be  considered  as  the  equivalent  of  the 
loss  of  such  hand,  arm,  foot,  leg  or  eye. 

This  compensation  shall  not  be  more  than  ten  dollars  per 
week  nor  less  than  five  dollars  per  week;  provided  that,  if 
at  the  time  of  injury  the  employee  receives  wages  of  less 
than  five  dollars  per  week,  then  he  shall  receive  the  full 
amount  of  such  wages  per  week  as  compensation. 

(d.)  No  compensation  shall  be  allowed  for  the  first  four- 
teen days  after  disability  begins,  except  as  hereinafter  pro- 
vided in  clause  (£.)  of  this  section. 

(e.)  During  the  first  fourteen  days  after  disability 
begins  the  employer  shall  furnish  reasonable  surgical,  medi- 
cal and  hospital  services,  medicines  and  supplies,  as  and 
when  needed,  not  to  exceed  twenty-five  dollars  in  value,  un- 
less the  employee  refuses  to  allow  them  to  be  furnished  by 
the  employer. 

(/.)  Should  the  employee  die  as  a  result  of  the  injury, 
the  period  during  which  compensation  shall  be  payable  to 
his  dependents  under  Section  6  of  this  Article  shall  be 


30  Compensation  Law. 

reduced  by  the  period  during  which  compensation  was  paid 
to  him  in  his  lifetime  under  this  Section  of  this  Article. 
No  reduction  shall  be  made  for  the  amount  which  may 
have  been  paid  for  medical  and  hospital  services  and  medi- 
cines nor  for  the  expenses  of  the  last  sickness  and  burial. 
Should  the  employee  die  from  some  other  cause  than  the 
injury,  the  liability  for  compensation  shall  cease. 

SECTION  6.  In  case  of  death,  compensation  shall  be 
computed  on  the  following  basis,  and  distributed  to  the 
following  persons : 

1.  To  the  child  or  children,  if  there  be  no  widow  nor  wid- 
ower entitled  to  compensation,  twenty-five  per  centum 
of  wages  of  deceased,  with  ten  per  centum  additional  for 
each  child  in  excess  of  two  with  a  maximum  of  sixty  per 
centum,  to  be  paid  to  their  guardian. 

2.  To  the  widow  or  widower,  if  there  be  no  children, 
twenty-five  per  centum  of  wages. 

3.  To  the  widow  or  widower,  if  there  be  one  child, 
forty  per  centum  of  wages. 

4.  To  the  widow  or  widower,  if  there  be  two  children, 
forty-five  per  centum  of  wages. 

5.  To  the  widow  or  widower,  if  there  be  three  children, 
fifty  per  centum  of  wages. 

6.  To  the  widow  or  widower,  if  there  be  four  children, 
fifty-five  per  centum  of  wages. 

7.  To  the  widow  or  widower,  if  there  be  five  children 
or  more,  sixty  per  centum  of  wages. 

8.  If  there  be  neither  widow,  widower  nor  children, 
then  to  the  father  and  mother,  or  the  survivor  of  them, 
if  dependent  to  any  extent  upon  the  employee  for  sup- 
port at  the  time  of  his  death,  twenty  per  centum  of  wages. 

9.  If  there  be  neither  widow,  widower,  children  nor 
dependent  parent,  then  to  the  brothers  and   sisters,  if 


Compensation  Law.  31 

actually  dependent  to  any  extent  upon  the  decedent  for 
support  at  the  time  of  his  death,  fifteen  per  centum  of 
wages  for  one  brother  or  sister,  and  five  per  centum  ad- 
ditional for  each  additional  brother  or  sister,  with  a  maxi- 
mum of  twenty-five  per  centum;  such  compensation  to 
be  paid  to  their  guardian. 

10.  Whether  or  not  there  be  dependents  as  aforesaid, 
the  reasonable  expenses  of  last  sickness  and  burial,  not 
exceeding  one  hundred  dollars  (without  deduction  of  any 
amounts  theretofore  paid  for  compensation  or  for  medi- 
cal expenses),  payable  to  the  dependents,  or  if  there  be 
no  dependents  then  to  the  personal  representatives  of  the 
deceased. 


Compensation  shall  be  payable  under  this  Section  to  or 
on  account  of  any  child,  brother  or  sister,  only  if  and  while 
such  child,  brother  and  sister,  is  under  the  age  of  sixteen. 
No  compensation  shall  be  payable  under  this  Section  to  a 
widow,  unless  she  was  living  with  her  deceased  husband  at 
the  time  of  his  death  or  was  then  actually  dependent  upon 
him  for  support.  No  compensation  shall  be  payable  under 
this  Section  to  a  widower,  unless  he  be  incapable  of  self- 
support  at  the  time  of  his  wife's  death  and  be  at  such  time 
dependent  upon  her  for  support.  The  terms  "child"  and 
"children"  shall  include  step-children  and  adopted  children 
if  members  of  decedent's  household  at  the  time  of  his 
death,  and  shall  include  posthumous  children.  Should  any 
dependent  of  a  deceased  employee  die,  or  should  the  widow 
or  widower  remarry,  or  should  the  widower  become  cap- 
able of  self-support,  the  right  of  such  dependent  or  such 
widow  or  widower  to  compensation  under  this  Section 
shall  cease.  If  the  compensation  payable  under  this  Section 
to  any  person  shall  for  any  cause  cease,  the  compensation 
to  the  remaining  persons  entitled  thereunder  shall  thereafter 
be  the  same  as  would  have  been  payable  to  them  had  they 
been  the  only  persons  entitled  to  compensation  at  the  time 
of  the  death  of  the  deceased. 


32  Compensation  Law. 

The  wages  upon  which  death  compensation  shall  be 
based  shall  not  in  any  case  be  taken  to  exceed  twenty 
dollars  per  week  nor  to  be  less  than  ten  dollars  per  week. 
This  compensation  shall  be  paid  during  three  hundred 
weeks,  and  in  the  case  of  children  entitled  to  compensation 
under  Clause  I  of  this  Section  the  compensation  of  each 
child  shall  (if  the  other  parent  be  dead  or  have  abandoned 
such  child)  continue  until  such  child  reach  the  age  of  six- 
teen, at  the  rate  of  fifteen  per  centum  of  wages  if  there  be 
but  one  child,  with  ten  per  centum  additional  for  each  addi- 
tional child,  with  a  maximum  of  fifty  per  centum. 

SECTION  7.  Except  as  hereinafter  provided,  all  com- 
pensation payable  under  this  article  shall  be  payable  in 
periodical  installments,  as  the  wages  of  the  employee 
were  payable  before  the  accident. 

Wherever  in  this  article  the  term  "wages"  is  used,  it 
shall  be  construed  to  mean  the  money  rate  at  which  the 
service  rendered  is  recompensed  under  the  contract  of 
hiring  in  force  at  the  time  of  the  accident,  and  shall  not 
include  gratuities  received  from  the  employer  or  others, 
nor  shall  it  include  board,  lodging  or  similar  advantages 
received  from  the  employer,  unless  the  money  value  of 
such  advantages  shall  have  been  fixed  by  the  parties  at 
the  time  of  hiring.  In  occupations  involving  seasonal 
employment  or  employments  dependent  upon  the  weather, 
the  employee's  weekly  wages  shall  be  taken  to  be  one- 
fiftieth  of  the  total  wages  which  he  has  earned  from 
all  occupations  during  the  year  immediately  preceding 
the  accident,  unless  it  be  shown  that  during  such  year,  by 
reason  of  exceptional  causes,  such  method  of  computation 
does  not  ascertain  fairly  the  earnings  of  the  employee,  in 
which  case  the  period  for  calculation  shall  be  extended  so 
far  as  to  give  a  basis  for  the  fair  ascertainment  of  his 
average  weekly  earnings.  In  continuous  employments,  if 
immediately  prior  to  the  accident  the  rate  of  wages  was  fixed 
by  the  day  or  hour,  or  by  the  output  of  the  employee,  his 
weekly  wages  shall  be  taken  to  be  five  and  and  one-half 


Compensation  Law.  33 

times  his  average  earnings  at  such  rate  for  a  working 
day  of  ordinary  length,  excluding  earnings  from  over- 
time and  using  as  the  basis  of  calculation  his  earn- 
ings during  so  much  of  the  preceding  six  months  as  he 
worked  for  the  same  employer.  Where  the  employee 
is  working  under  concurrent  contracts  with  two  or  more 
employers,  his  wages  from  all  employers  shall  be  consid- 
ered as  if  earned  from  the  employer  liable  for  compensa- 
tion. 

SECTION  8.  Compensation  under  this  article  to  alien 
dependent  widows,  children  and  parents,  not  residents  of 
the  United  States,  shall  be  the  same  in  amount  as  is  pro- 
vided in  each  case  for  residents,  except  that,  at  any  time 
within  one  year  after  the  death  of  the  injured  employee,  the 
employer  may,  at  his  option,  commute  all  future  instal- 
ments of  compensation  to  be  paid  to  alien  dependents 
not  residents  of  the  United  States  by  paying  to  such 
alien  dependents  two-thirds  of  the  total  amount  of  such 
future  installments  of  compensation.  Alien  widowers, 
brothers  and  sisters  not  residents  of  the  United  States 
shall  not  be  entitled  to  any  compensation. 

SECTION  9.  Unless  the  employer  shall  have  actual 
knowledge  of  the  occurrence  of  the  injury,  or  unless  the 
employee  or  some  one  on  his  behalf,  or  some  of  the 
dependents  or  some  one  on  their  behalf,  shall  give  notice 
thereof  to  the  employer  within  fourteen  days  after  the 
accident,  no  compensation  shall  be  due  until  such  notice 
be  given  or  knowledge  obtained.  If  notice  be  given  or 
the  knowledge  obtained  after  fourteen  days  but  within 
thirty  days  after  the  accident,  the  delay  shall  not  bar  com- 
pensation unless  the  employer  shall  show  that  he  was  prej- 
udiced thereby,  and  then  only  to  the  extent  of  such  prej- 
udice. If  the  notice  be  given  or  the  knowledge  obtained 
after  thirty  days  but  within  ninety  days  after  the  accident, 
and  if  the  employee  or  other  beneficiary  shall  show  that 
his  delay  in  giving  notice  was  due  to  his  mistake  or  ignor- 
ance of  fact  or  of  law,  or  to  his  physical  or  mental  inability, 


34  Compensation  Law. 

or  to  fraud,  misrepresentation  or  deceit,  or  to  any 
other  reasonable  cause  or  excuse,  then  compensation  shall  be 
allowed,  except  to  the  extent  that  the  employer  shall 
show  that  he  was  prejudiced  by  such  delay.  Unless  knowl- 
edge be  obtained  or  notice  given  within  ninety  days 
after  the  accident,  no  compensation  shall  be  allowed. 

SECTION  10.  The  notice  referred  to  in  Section  9  hereof 
shall  be  substantially  in  the  following  form: 

To  (name  of  employer) 

You  are  hereby  notified  that  an  injury  of  the 
following  character  (  ) 

was  received  by  (name  of  employee  injured), 
who  was  in  your  employment  at  (place)  while 
engaged  as  (kind  of  employment)  on 

or  about  the  (         )  day  of  (  )  A.  D. 

(  ),  and  that  compensation  will  be  claimed 

therefor. 
Date :  Signed  (  :) 

but  no  variation  from  this  form  shall  be  material  if  the 
notice  be  sufficient  to  inform  the  employer  that  a  certain 
employee,  by  name,  received  an  injury,  the  character  of 
which  is  described  in  ordinary  language,  in  the  course 
of  his  employment  on  or  about  a  time  specified  and  at  or 
near  a  place  specified. 

SECTION  u.  The  notices  referred  to  in  Section  3  and 
Section  9  hereof  may  be  served  personally  upon  the  em- 
ployer, or  upon  the  manager  or  superintendent  in  charge  of 
the  works  or  business  in  which  the  accident  occurred,  or  by 
sending  them  through  the  registered  mail  to  the  employer  at 
his  or  its  last  known  residence  or  place  of  business,  or  if 
the  employer  be  a  corporation,  either  foreign  or  domestic, 
then  upon  the  president,  vice-president,  secretary  or  treas- 
urer thereof.  Knowledge  of  the  occurrence  of  the  injury 
on  the  part  of  any  of  said  agents  shall  be  the  knowledge 
of  the  employer. 


Compensation  Law.  35 

SECTION  12.  After  an  injury,  the  employee,  if  so  re- 
quested by  his  employer,  must  submit  himself  for  exam- 
ination at  some  reasonable  time  and  place,  and  as  often 
as  may  be  reasonably  requested,  to  a  physician  or  physi- 
cians legally  authorized  to  practice  under  the  laws  of 
such  place,  who  shall  be  selected  and  paid  by  the  em- 
ployer. If  the  employee  requests,  he  shall  be  entitled 
to  have  a  physician  or  physicians  of  his  own  selection,  to 
be  paid  by  him,  present  to  participate  in  such  examina- 
tion. For  all  examinations,  after  the  first,  the  employer 
shall  pay  the  reasonable  traveling  expenses  and  loss  of 
wages  incurred  by  the  employee  in  order  to  submit  to 
such  examination.  The  refusal  of  the  employee  to  sub- 
mit to  such  examination  shall  deprive  him  of  the  right 
to  compensation  under  this  Article  during  the  continu- 
ance of  such  refusal  and  the  period  of  such  refusal  shall  be 
deducted  from  the  period  during  which  compensation  would 
otherwise  be  payable. 

SECTION  13.  In  case  of  a  failure  to  agree  upon  a  claim 
for  compensation  under  this  Article  between  the  em- 
ployer and  employee,  or  the  dependents  of  the  em- 
ployee, either  party  may  submit  the  claim,  as  to  ques- 
tions of  fact,  the  nature  and  effect  of  the  injuries  and  the 
amount  of  compensation  due  therefor  according  to  this 
Article,  to  the  court  of  common  pleas  of  the  county  :n 
which  the  accident  occurred,  or  of  the  county  in  which  the 
adverse  party  resides  or  has  a  permanent  place  of  busi- 
ness, or  by  agreement  of  the  parties  to  the  court  of  com- 
mon pleas  of  any  other  county,  which  courts  shall  hear 
and  determine  such  disputes  in  a  summary  manner,  and 
their  decisions  as  to  all  questions  of  fact  shall  be  con- 
clusive. 

SECTION  14.  In  case  of  personal  injury,  all  claims  for 
compensation  shall  be  forever  barred  unless,  within 
one  year  after  the  accident,  the  parties  shall  have  agreed 
upon  the  compensation  payable  under  this  Article,  or 
unless,  within  one  year  after  the  accident,  one  of  the 


36  Compensation  Law. 

parties  shall  have  filed  a  petition  as  provided  in  Section 
15  hereof.  In  cases  of  death,  all  claims  for  compen- 
sation shall  be  forever  barred  unless,  within  one  year 
after  the  death,  the  parties  shall  have  agreed  upon  the 
compensation  under  this  Article,  or  unless '  within  one 
year  after  the  death,  one  of  the  parties  shall  have  filed 
a  petition  as  provided  in  Section  15  hereof.  Where, 
however,  payments  of  compensation  have  been  made  in 
any  case,  said  limitation  shall  not  take  effect  until  the  ex- 
piration of  one  year  from  the  time  of  the  making  of  the 
last  payment. 

SECTION  15.  Procedure  in  case  of  dispute  shall  be  as 
follows : 

Either  party  may  present  a  petition  to  said  court  or 
any  judge  thereof  setting  forth  the  names  and  residences 
of  the  parties  and  the  facts  relating  to  employment  at 
the  time  of  the  accident,  the  extent  and  character  of  the 
injury,  the  amount  of  wages  received  at  the  time  of  the 
accident,  the  knowledge  of  the  employer  or  notice  of  the 
occurrence  of  the  injury,  and  such  other  facts  as  may  be 
necessary  and  proper  for  the  information  of  the  said 
court,  and  shall  state  the  matter  or  matters  in  dispute 
and  the  contention  of  the  petitioner  with  reference 
thereto.  This  petition  shall  be  verified  by  the  oath  or 
affirmation  of  the  petitioner. 

Upon  the  presentation  of  such  petition,  the  same  shall 
be  filed  with  the  prothonotary  of  the  court  of  common 
pleas,  and  the  court  shall  fix  a  time  and  place  for  the 
hearing  thereof  not  less  than  three  weeks  after  the  date 
of  the  filing  of  said  petition.  A  copy  of  said  petition 
and  order  shall  be  served  upon  the  adverse  party  as  a 
summons  in  a  civil  action  may  be  served.  Within  seven 
days  after  the  service  of  such  notice  (unless  the  time  be 
extended  by  the  court  for  cause  shown),  the  adverse  party 
shall  file  an  answer  to  said  petition,  which  shall  admit  or 
deny  the  substantial  averments  thereof,  and  shall  state 
the  contention  of  the  answering  party  with  reference  to 
the  matters  in  dispute.  The  answer  shall  be  verified  in 


Compensation  Law.  37 

like  manner  as  the  petition.  If  no  answer  be  filed  as 
aforesaid,  evidence  shall  be  offered  at  the  hearing  by  the 
petitioner  only.  The  court  shall  in  every  case  have  au- 
thority to  allow  amendments  of  the  petition  or  answer, 
and  to  suspend  the  proceedings  during  the  refusal  of  the 
employee  to  submit  to  the  examination  required  by  Sec- 
tion 12  hereof. 

At  the  time  fixed  for  hearing  or  any  adjournment 
thereof,  the  said  court  or  any  judge  thereof  shall  hear  the 
witnesses,  and  in  a  summary  manner  decide  the  merits  of 
the  controversy.  This  decision,  called  an  award,  shall  oe 
in  writing  and  filed  with  the  prothonotary  of  the  court  of 
common  pleas,  and  shall  contain  a  brief  statement  of  the 
facts  as  determined  by  said  court.  Costs  may  be  awarded 
by  said  court  in  its  discretion,  and  when  so  awarded,  the 
same  costs  shall  be  allowed,  taxed  and  collected  as  are 
allowed,  taxed  and  collected  for  like  services  in  the  same 
court.  After  petition  filed,  the  court  of  common  pleas 
may,  in  its  discretion,  upon  motion  of  either  party,  or 
of  its  own  motion,  appoint  one  or  more  impartial  physi- 
cians or  surgeons  to  examine  the  injuries  of  the  claim- 
ant and  to  report  thereon  to  the  court.  Said  court  shall 
have  power  to  fix  the  compensation  of  such  physicians 
or  surgeons,  and  to  tax  the  same  as  a  part  of  the  costs 
of  the  proceedings.  The  report  of  any  physicians  or 
surgeons  appointed  by  the  court  as  aforesaid  shall 
be  filed  with  the  prothonotary  and  shall  be  a  part  of  the 
record  and  shall  be  open  to  inspection  by  both  parties. 
Such  report  shall  not  be  conclusive  of  the  facts  therein 
stated,  but  shall  be  advisory  only.  Appeals  may  be  taken 
from  the  award  of  the  court  of  common  pleas  to  the  Su- 
preme or  Superior  Courts  in  such  manner  and  upon  sucK 
terms  as  the  Supreme  Court  shall  by  rule  prescribe,  but 
no  appeal  shall  operate  as  a  supersedeas  unless  allowed 
by  the  trial  or  appellate  court,  except  where  the  compen- 
sation shall  have  been  commuted  as  provided  in  Section 
1 6  of  this  Article.  Cases  arising  under  this  act  shall  have 
precedence,  both  in  the  courts  of  common  pleas  and  in  the 
appellate  courts,  over  all  other  civil  cases. 


38  Compensation  Law. 

SECTION  16.  The  compensation  contemplated  by  this 
Article  may  be  commuted  by  said  court  of  common  pleas, 
at  its  present  value  when  discounted  at  six  per  cent,  inter- 
est, with  annual  rests,  disregarding  the  probability  of  the 
beneficiary's  death  (except  in  commuting  payments  due 
under  Clause  (a.)  Section  5  of  this  Article,)  upon  applica- 
tion of  either  party,  with  due  notice  to  the  other,  if  it  appear 
that  such  commutation  will  be  for  the  best  interest  of 
the  employee  or  the  dependents  of  the  deceased  em- 
ployee, or  that  it  will  avoid  undue  expense  or  undue 
hardship  to  either  party,  or  that  such  employee  or  de- 
pendent has  removed  or  is  about  to  remove  from  the 
United  States,  or  that  the  employer  has  sold  or  other- 
wise disposed  of  the  whole  or  the  greater  part  of  his 
business  or  assets.  Except  as  provided  in  Section  8  hereof 
and  in  this  Section,  no  commutation  of  compensation  shall 
be  made. 

An  agreement  or  award  of  compensation  may  be  modi- 
fied at  any  time  by  a  subsequent  agreement,  or  may  be  re- 
viewed by  said  court  upon  the  application  of  either  party 
on  the  ground  that  the  incapacity  of  the  injured  employee 
has  subsequently  increased  or  diminished  or  that  the  status 
of  the  dependent  has  changed.  In  such  case,  the  provisions 
of  Sections  12  and  15  of  this  Article  with  reference  to 
medical  examination  shall  apply. 

At  any  time  after  the  entry  of  the  award,  a  sum  equal 
to  all  future  installments  of  compensation  may,  (where 
death  or  the  nature  of  the  injury  renders  the  amount  of 
future  payments  certain)  by  leave  of  court,  be  paid  by  the 
employer  to  any  savings  bank,  trust  company  or  life  insur- 
ance company  in  good  standing  and  authorized  to  do  busi- 
ness in  this  State  and  having  an  office  in  the  county  in 
which  the  award  was  entered,  and  such  sum,  together  with 
all  interest  thereon,  shall  thereafter  be  held  in  trust  for  the 
employee  or  the  dependents  of  the  employee,  who  shall  have 
no  further  recourse  against  the  employer.  The  payment 
of  such  sum  by  the  employer,  evidenced  by  the  receipt  of 
the  trustee  noted  upon  the  prothonotary's  docket,  shall 


Compensation  Law.  39 

operate  as  a  satisfaction  of  said  award  as  to  the  employer. 
Payments  from  said  fund  shall  be  made  by  the  trustee  in 
the  same  amounts  and  at  the  same  periods  as  are  herein  re- 
quired of  the  employer  until  said  fund  and  interest  shall  be 
exhausted.  In  the  appointment  of  the  trustee,  preference 
shall  be  given,  in  the  discretion  of  the  court,  to  the  choice 
of  the  employee  or  the  dependents  of  the  deceased  em- 
ployee. 

SECTION  17.  The  right  of  compensation  granted  by  this 
Article  of  this  act  shall  have  the  same  preference  (without 
limit  of  amount)  against  the  assets  of  the  employer  as  is 
now  or  may  hereafter  be  allowed  by  law  for  a  claim  for 
unpaid  wages  for  labor.  Claims  or  payments  due  under 
this  Article  of  this  act  shall  not  be  assignable,  and  (except 
as  provided  in  Section  2  of  Article  III  hereof)  shall  be 
exempt  from  all  claims  of  creditors  and  from  levy,  execu- 
tion or  attachment,  which  exemption  may  not  be  waived. 

SECTION  18.  Where  the  employer  and  the  employee,  or 
the  dependents  of  the  employee,  shall,  after  any  accident, 
agree  upon  the  compensation  payable  hereunder  for  such 
accident,  a  memorandum  of  such  agreement,  signed  by  the 
parties,  may  be  filed  with  the  prothonotary  of  said  court  of 
common  pleas.  The  costs  of  the  prothonotary  for  such  ser- 
vice shall  be  allowed,  taxed  and  collected  as  heretofore  upon 
a  confession  of  judgment.  When  thus  filed,  such  agree- 
ment shall  have  the  same  effect  as  if  it  were  an  award  of 
the  court,  as  provided  in  Section  15  hereof,  but  shall 
be  subject  to  review  by  the  court  for  fraud,  mistake  or 
other  cause  shown;  provided,  however,  that  nothing  in  this 
Section  shall  be  construed  to  permit  a  commutation  of  pay- 
ments, except  as  provided  in  Sections  8  and  16  hereof;  and 
provided  further  that  no  agreement  relating  to  compensation 
shall  be  valid  if  made  within  fourteen  days  of  the  accident 
nor  shall  any  such  agreement  be  valid  if  it  vary  the  percent- 
age of  wages  payable  as  compensation  or  the  period  during 


4O  Compensation  Law. 

which  compensation  is  to  be  paid,  as  stated  in  Sections  5 
and  6  hereof. 

SECTION  19.  If  default  shall  be  made  by  the  employer 
for  thirty  days  after  demand,  in  the  payment  of  any  amount 
due  under  any  of  the  provisions  of  this  Article,  then  upon 
petition  of  any  person  interested,  and  after  ten  days'  notice 
thereof  to  the  employer  served  in  the  same  manner  in  which 
a  summons  may  be  served,  the  court  or  any  judge  thereof 
shall,  if  the  default  still  exists,  enter  judgment  thereon  for 
the  amount  or  amounts  due,  together  with  interest  thereon 
and  costs.  Upon  such  judgment,  no  stay  of  execution  shall 
be  allowed,  except  in  the  discretion  of  the  court. 

SECTION  20.  It  shall  be  the  duty  of  the  prothonotary  of 
each  court  of  common  pleas  to  make  report  monthly  to  the 
Bureau  of  Industrial  Statistics  of  all  proceedings  begun  in 
such  court  under  this  Article  of  this  act,  classifying  such 
report  in  such  manner  as  to  show  whether  the  proceedings 
are  brought  for  the  settlement  of  a  dispute  as  to  liability 
for  compensation,  for  a  modification  thereof,  for  a  commu- 
tation of  payments,  for  a  judgment  in  default  of  payment, 
or  for  fixing  of  counsel  fees;  and  such  report  shall  state  the 
number  and  term  of  each  proceeding,  but  neither  names 
nor  further  detail  need  be  given  unless  required  by  the  Bu- 
reau of  Industrial  Statistics. 

SECTION  21.  Where  a  third  person  is  liable  to  the  em- 
ployee or  the  dependents  for  the  injury  or  death,  the  em- 
ployer shall  be  subrogated  to  the  right  of  the  employee  or 
the  dependents  against  such  third  person,  but  only  to 
the  extent  of  the  compensation  payable  under  this  Article 
by  the  employer.  Any  recovery  against  such  third  person 
in  excess  of  the  compensation  theretofore  paid  by  the  em- 
ployer shall  be  paid  forthwith  to  the  employee  or  to  the  de- 
pendents, and  shall  be  treated  as  an  advance  payment  by  the 
employer  on  account  of  any  future  installments  of  compen- 
sation. 


Compensation  Law.  41 

ARTICLE  III. 
General  Provisions. 

SECTION  i.  'Wherever  in  this  act  the  singular  is  used, 
the  plural  shall  be  included;  where  the  masculine  gender 
is  used,  the  feminine  and  neuter  shall  be  included. 

Employer  is  declared  to  be  synonymous  with  master 
and  includes  natural  persons,  partnerships,  joint  stock 
companies,  corporations  for  profit,  corporations  not  for 
profit,  municipal  corporations,  the  Commonwealth  and  all 
governmental  agencies  created  by  it.  Employee  is  synon- 
ymous with  servant,  and  includes  all  natural  persons 
who  perform  service  for  another  for  a  valuable  consider- 
ation, exclusive  of  casual  employees,  and  exclusive  of  per- 
sons not  employed  in  the  course  of  the  regular  business  or 
domestic  affairs  of  the  employer,  and  exclusive  of  persons 
to  whom  articles  or  materials  are  given  out  to  be  made  up, 
cleaned,  washed,  altered,  ornamented,  finished  or  repaired  or 
adapted  for  sale  in  the  worker's  own  home  or  on  other  prem- 
ises not  under  the  control  or  management  of  the  employer. 

The  exercise  and  performance  of  the  powers  and  duties 
of  a  local  or  other  public  authority  shall,  for  the  purposes 
of  this  act,  be  treated  as  the  trade  or  business  of  the  au- 
thority. 

SECTION  2.  No  claim  or  agreement  for  legal  services  or 
disbursements  in  support  of  any  demand  made  or  suit 
brought  under  the  provisions  of  any  Article  of  this  act  shall 
be  an  enforceable  lien  against  the  amount  to  be  paid  as  dam- 
ages or  compenstaion  or  be  valid  or  binding  in  any  other  re- 
spect, unless  the  same  be  approved  in  writing  by  the  judge 
presiding  at  the  trial,  or,  in  case  of  settlement  without  trial, 
by  a  judge  of  the  common  pleas  court  of  the  county  in 
which  the  accident  occurred.  After  such  approval,  if  notice 
in  writing  be  given  to  the  employer  of  such  claim  or  agree- 
ment for  legal  services  and  disbursements,  the  same  shall  be 
a  lien  against  any  amount  thereafter  to  be  paid  as  damages 
or  compensation;  Provided,  however,  that  where  the  em- 


42  Compensation  Law. 

ployee's  compensation  is  payable  by  the  employer  in  periodi- 
cal installments,  the  court  shall  fix,  at  the  time  of  approval, 
the  proportion  of  each  installment  to  be  paid  on  account  of 
legal  services  and  disbursements. 

SECTION  3.  If  any  provision  of  this  act  shall  be  held  by 
any  court  to  be  unconstitutional,  such  judgment  shall  not  af- 
fect any  other  Section  or  provision  of  this  act,  except 
that  Articles  I  and  II  are  hereby  declared  to  be  inseparable 
and  as  one  legislative  thought,  and  if  either  Article  be 
declared  by  such  court  void  or  inoperative  in  an  essential 
part,  so  that  the  whole  of  such  Article  must  fall,  the 

other  Article  shall  fall  with  it  and  not  stand  alone. 

( 

SECTION  4.  Nothing  in  this  act  shall  affect  or  impair  any 
right  of  action  which  shall  have  accrued  before  this  act 
shall  take  effect 

SECTION  5.  All  acts  and  parts  of  acts  inconsistent  with 
the  provisions  of  this  act  are  hereby  repealed. 

SECTION  6.  This  act  shall  take  effect  on  the  first  day 
of  July  next  succeeding  its  passage  and  approval,  and 
shall  be  known  as  the  "Workmen's  Compensation  Law  of 


43 

EXHIBIT  "E." 

AN  ACT 

To  PROVIDE  FOR  THE  INCORPORATION  AND  REGULATION  OF 
EMPLOYERS'  MUTUAL  LIABILITY  INSURANCE  ASSOCIA- 
TIONS. 

SECTION  i.  Be  it  enacted,  etc.,  that  any  twenty  or 
more  employers,  who  have  in  the  aggregate  not  less  than 
five  thousand  employees  in  the  State  of  Pennsylvania,  and 
who  have  accepted  the  provisions  of  Article  II  of  the 
Workmen's  Compensation  Law  of  1913,  may  form  an 
incorporated  employers'  mutual  liability  insurance  asso- 
ciation for  the  purpose  of  insuring  themselves  and  such 
other  employers  as  may  become  subscribers  to  the  associa- 
tion, against  liability  for  the  compensation  payable  under 
the  terms  of  Article  II  of  such  Act. 

SECTION  2.  The  articles  of  association  thereof  shall 
state : — 

(a.)  The  name  of  the  association. 

(b!)  The  place  of  its  principal  office. 

(c.)  The  duration  of  the  association. 

(d.)  The  name  and  address  of  its  treasurer. 

Any  name  not  in  use  by  an  existing  association  may  be 
adopted,  but  must  clearly  designate  the  object  and  pur- 
pose of  the  association. 

SECTION  3.  The  subscribers  to  said  articles  of  agree- 
ment shall  acknowledge  the  same  before  some  person 
empowered  to  take  acknowledgments  of  deeds,  and  for- 
ward the  same  in  duplicate  to  the  Commissioner  of  In- 
surance, who  shall  certify  in  duplicate  to  the  Governor 
whether  all  of  the  requirements  hereof  have  been  com- 
plied with.  Whereupon  the  Governor  shall,  in  case  he 
approves  the  application,  endorse  his  approval  thereon 
in  duplicate,  and  cause  letters  patent  to  issue  creating 
the  subscribers  and  their  associates  a  body  corporate, 


44  Mutual  Insurance  Associations. 

under  the  name  designated  in  said  articles,  but  such  asso- 
ciation shall  not  engage  in  business  until  the  further 
provisions  of  this  act  have  been  complied  with. 

SECTION  4.  Such  association  shall  not  begin  tg  issue 
policies  until  a  list  of  the  subscribers,  with  the  number 
of  employees  of  each,  together  with  such  other  informa- 
tion as  the  Commissioner  of  Insurance  may  require,  shall 
have  been  filed  at  the  Insurance  Department,  nor  until 
the  President  and  Secretary  of  the  association  shall  have 
certified  under  oath  that  every  subscription  in  the  list 
so  filed  is  genuine  and  made  with  an  agreement  of  all  the 
subscribers  that  they  will  take  the  policies  subscribed  for 
within  thirty  days  of  the  granting  of  a  license  by  the  Com- 
missioner of  Insurance. 

SECTION  5.  Upon  the  filing  of  the  certificate  provided 
for  in  the  preceding  section,  the  Commissioner  of  In- 
surance shall  make  such  investigations  as  he  may  deem 
proper,  and  if  his  findings  warrant  it,  grant  a  license  to 
the  association  to  issue  policies. 

SECTION  6.  Charters  under  this  act  may  be  perpetual, 
or  limited  in  time,  as  the  articles  of  agreement  shall 
specify. 

SECTION  7.  Such  association  shall  have  the  power  to 
make  by-laws  for  the  goverment  of  its  officers  and  the 
conduct  of  its  affairs,  and  the  same  to  alter  and  amend; 
and  adopt  a  common  seal. 

SECTION  8.  The  annual  meeting  for  the  election  of 
directors  shall  be  held  at  such  time  in  the  month  of 
January  as  the  by-laws  of  the  association  may  direct.  Of 
the  time  and  place  of  said  meeting  at  least  thirty  days' 
previous  written  or  printed  notice  shall  be  given  to  the 
subscribers,  or  such  notice  may  be  given  by  publication 
not  less  than  three  times  in  at  least  two  daily  or  weekly 


Mutual  Insurance  Associations.  45 

newspapers,  published  in  the  city  or  county  wherein  the 
association  has  its  principal  office,  and  in  the  legal  period- 
ical, if  any,  designated  by  the  rules  of  court  of  the  proper 
county  for  the  publication  of  legal  notices.  Subscribers 
who,  during  the  preceding  calendar  year,  have  paid  into 
the  treasury  of  the  association,  premiums  amounting  to 
more  than  one-half  of  the  total  premiums  received  by  it 
during  that  year,  shall  constitute  a  quorum.  At  such  an- 
nual meeting  the  subscribers  shall  elect,  by  ballot,  from 
their  own  number,  not  less  than  five  directors,  a  ma- 
jority of  whom  shall  be  residents  of  this  Commonwealth, 
to  serve  for  at  least  one  year  and  until  their  successors 
are  duly  chosen :  Provided,  however,  that  such  associa- 
tion may  provide  in  its  by-laws  for  the  division  of  its 
Board  of  Directors  into  two,  three  or  four  classes,  and 
for  the  election  thereof,  at  its  annual  meetings,  in  such 
manner  that  the  members  of  one  class  only  shall  retire 
and  their  successors  be  chosen  each  year.  Vacancies  may 
be  filled  by  election  by  the  Board  until  the  next  annual 
meeting.  In  the  choice  of  directors  and  in  all  meetings  of 
the  association,  each  subcriber  shall  be  entitled  to  one 
vote  for  every  one  hundred  dollars  or  any  fraction  thereof 
paid  by  him  in  premiums  into  the  treasury  of  the  associa- 
tion during  the  preceding  calendar  year.  Subscribers  may 
vote  by  proxy,  and  the  record  of  all  votes  shall  be  made 
by  the  Secretary,  and  shall  show  whether  the  same  were 
cast  in  person  or  by  proxy  and  shall  be  evidence  of  all 
such  elections.  Not  less  than  three  directors  shall  con- 
stitute a  quorum.  The  directors  shall  annually  choose, 
by  ballot,  a  President,  who  shall  be  a  member  of  the 
Board;  a  Secretary;  a  Treasurer,  who  may  also  be  either 
the  President  or  Secretary;  and  such  other  officers  as 
the  by-laws  may  provide;  and  they  shall  fix  the  salaries 
of  the  President  and  Secretary,  as  well  as  the  salaries  or 
compensation  of  such  other  officers  and  agents  as  the 
by-laws  prescribe.  Vacancies  in  any  office  may  be  filled 
by  the  directors  or  by  the  subscribers,  as  the  by-laws 
shall  prescribe. 


46  Mutual  Insurance  Associations. 

SECTION  9.  Policies  of  insurance  issued  by  any  such 
association  may  be  made  either  with  or  without  the  seal 
thereof,  and  they  shall  be  signed  by  the  President,  or 
such  other  officers  as  may  be  designated  by  the  directors 
for  that  purpose,  and  attested  by  the  Secretary. 

SECTION  10.  If  at  any  time  the  number  of  subscribers 
falls  below  twenty,  or  the  number  of  the  subscribers'  em- 
ployees within  the  State  falls  below  five  thousand,  no 
further  policies  shall  be  issued  until  the  total  number  of 
subscribers  amounts  to  not  less  than  twenty,  whose  em- 
ployees within  the  State  are  not  less  than  five  thousand. 

SECTION  n.  The  Board  of  Directors  shall  be  entitled 
to  inspect  the  plant,  work-room,  shop,  farm  or  premises 
of  any  subscriber,  and  for  such  purpose  to  appoint  inspec- 
tors, who  shall  have  free  access  to  all  such  premises  dur- 
ing the  regular  working  hours,  and  the  Board  of  Direc- 
tors shall  likewise  from  time  to  time  be  entitled  to  ex- 
amine by  their  auditor  or  other  agent,  the  books,  records 
and  payrolls  of  any  subcriber,  for  the  purpose  of  de- 
termining the  amount  of  premium  chargeable  to  such 
subscriber. 

The  Board  of  Directors  shall  make  reasonable  rules  and 
regulations  for  the  prevention  of  injuries  upon  the 
premises  of  subscribers;  and  they  may  refuse  to  insure 
or  may  terminate  the  insurance  of  any  subscriber  who 
refuses  to  permit  such  examinations  or  disregards  such 
rules  or  regulations,  and  forfeit  all  premiums  previously 
paid  by  him,  but  such  termination  of  the  insurance  of 
any  subscriber  shall  not  release  him  from  liability  for  the 
payment  of  assessments  then  or  thereafter  made  by  the 
Board  of  Directors  to  make  up  deficiencies  existing  at  the 
termination  of  his  insurance. 

SECTION  12.  Every  subscriber  to  such  association  shall  be 
under  a  contingent  mutual  liability  for  the  payment  of 
losses  and  expenses  in  excess  of  the  cash  funds  of  the  as- 
sociation to  an  amount  equal  to  the  premium  paid  by  him 
during  the  current  year. 


Mutual  Insurance  'Associations.  47 

SECTION  13.  The  Board  of  Directors  shall  determine  the 
amount  of  the  premiums  which  the  subscribers  of  the  as- 
sociation shall  pay  for  their  insurance,  in  accordance  with 
the  nature  of  the  business  in  which  such  subscribers  are 
engaged,  and  the  probable  risk  of  injury  to  their  employees 
under  existing  conditions,  and  they  shall  fix  premiums  at 
such  amounts  as  in  their  judgment,  subject  to  the  approval 
of  the  Commissioner  of  Insurance,  shall  be  sufficient  to 
enable  the  association  to  pay  to  its  subscribers  all  sums 
which  may  become  due  and  payable  to  their  employees  under 
the  provisions  of  Article  II  of  the  Workmen's  Compensa- 
tion Law  of  1913,  and  also  the  expenses  of  conducting 
the  business  of  the  association.  In  fixing  the  premium 
payable  by  any  subscriber,  the  Board  of  Directors  may 
take  into  account  the  condition  of  the  plant,  work-room, 
shop,  farm  or  premises  of  such  subscriber  in  respect  to  the 
safety  of  those  employed  therein,  as  shown  by  the  report 
of  any  inspector  appointed  by  such  Board,  and  they  may 
from  time  to  time  change  the  amount  of  premiums  pay- 
able by  any  of  the  subscribers  as  circumstances  may  re- 
quire, and  the  condition  of  the  plant,  work-room,  shop, 
farm  or  premises  of  such  subscriber  in  respect  to  the  safety 
of  their  employees  may  justify,  and  they  may  increase  the 
premiums  of  any  subscriber  neglecting  to  provide  safety 
devices  required  by  law,  or  disobeying  the  rules  or  regula- 
tions made  by  the  Board  of  Directors  in  accordance  with 
the  provisions  of  Section  eleven  of  this  Act.  No  policy 
of  insurance  issued  to  any  subscriber  shall  be  effective 
until  he  shall  have  paid  in  cash  the  premium  so  fixed  and 
determined. 

SECTION  14.  If  the  association  be  not  possessed  of  cash 
funds,  over  and  above  its  unearned  premiums,  on  unde- 
termined risks,  sufficient  for  the  payment  of  incurred  losses 
and  expenses,  it  shall  make  an  assessment  for  the  amount 
needed  to  pay  such  losses  and  expenses  upon  the  subscrib- 
ers liable  to  assessment  therefor,  in  proportion  to  their 
several  liabilities. 


48  Mutual  Insurance  Associations. 

SECTION  15.  The  Board  of  Directors  may  from  time  to 
time  fix  and  determine  the  amount  to  be  paid  as  dividends 
upon  policies  expiring  each  year,  after  retaining  the  un- 
earned premiums  upon  undetermined  risks  and  sufficient 
sums  to  pay  all  the  compensation  then  payable,  or  which 
may  become  payable  on  account  of  injuries  received  by 
employees  of  the  subscribers,  and  to  pay  the  expenses  in- 
curred in  the  operation  of  the  business  of  the  association. 

SECTION  16.  The  Board  of  Directors  may  divide  the  sub- 
scribers into  groups  in  accordance  with  the  nature  of  their 
business  and  the  probable  risk  of  injury  therein.  In  such 
case  they  shall  fix  all  premiums,  make  all  assessments,  and 
determine  and  pay  all  dividends  by  and  for  each  group 
in  accordance  with  the  experience  thereof,  but  all  funds  of 
the  association  and  the  contingent  liability  of  all  the  sub- 
scribers shall  be  available  for  the  payment  of  any  claim 
against  the  association:  Provided,  however,  that  (as  be- 
tween the  association  and  its  subscribers),  until  the  whole 
of  the  contingent  liability  of  the  members  of  any  group 
shall  be  exhausted,  the  general  funds  of  the  association 
and  the  contingent  liability  of  the  members  of  other  groups 
shall  not  be  available  for  the  payment  of  losses  and  ex- 
penses incurred  by  such  group  in  excess  of  the  earned  pre- 
miums paid  by  the  members  thereof. 

SECTION  17.  A  statement  of  any  proposed  premium, 
assessment,  dividend  or  distribution  of  subscribers  into 
groups,  shall  be  filed  with  the  Insurance  Department  and 
shall  not  take  effect  until  approved  by  the  Commissioner 
of  Insurance. 

SECTION  18.  If  any  officer  of  the  association  shall  falsely 
make  oath  to  any  certificate  required  to  be  filed  with  the 
Commissioner  of  Insurance,  he  shall  be  guilty  of  perjury. 

SECTION  19.  Any  subscriber  of  the  association  who  has 
complied  with  all  its  rules  and  regulations,  may  withdraw 
therefrom  by  written  notice  to  that  effect,  sent  by  such  sub- 


Mutual  Insurance  Associations.  49 

scriber  by  registered  mail  to  the  association,  and  such  with- 
drawal shall  become  effective  on  the  first  day  of  the  month 
immediately  following  the  tenth  day  after  the  receipt  of 
such  notice,  but  such  withdrawal  shall  not  release  such  sub- 
scriber from  liability  for  the  payment  of  assessments  there- 
after made  by  the  Board  of  Directors  to  make  up  deficiencies 
existing  at  the  date  of  his  withdrawal,  and  such  subscriber 
shall  be  entitled  to  his  share  of  any  dividends  earned  at  the 
date  of  his  withdrawal. 

SECTION  20.  If  the  Commissioner  of  Insurance  shall  find 
that  more  than  fifty  per  centum  of  the  contingent  liability 
of  all  the  subscribers  is  required  to  pay  accrued  losses,  after 
charging  against  the  funds  in  hand  the  unearned  premiums 
on  undetermined  risks,  no  further  insurance  shall  be  issued 
until  the  subscribers  have  made  good  such  deficiency. 

SECTION  21.  Such  association  shall  invest  and  keep  in- 
vested all  its  funds  of  every  description,  excepting  such 
cash  as  may  be  required  in  the  transaction  of  its  business, 
as  follows: — 

First. — In  such  real  estate  as  it  is  authorized  to  hold  by 
Section  22  of  this  Act. 

Second. — In  bonds  of  the  United  States  or  the  District 
of  Columbia,  or  of  any  State  or  territory  of  the  United 
States. 

Third. — In  the  legally  authorized  bonds  or  notes  of  any 
city,  county,  township,  municipality,  school  or  water  district 
of  this  Commonwealth,  or  of  any  other  State  or  territory 
of  the  United  States  or  Canada. 

Fourth. — In  the  bonds  or  notes  of  any  solvent  railroad 
or  street  railway  corporation,  upon  which  no  default  in  in- 
terest has  been  made. 

Fifth. — In  loans  upon  improved  and  unincumbered  real 
estate;  provided,  that  no  loan  on  such  real  estate  shall  ex- 


50  Mutual  Insurance  Associations. 

ceed  sixty-six  and  two-thirds  per  centum  of  the  fair  market 
value  thereof  at  the  time  of  making  such  loan. 

SECTION  22.  No  such  association  shall  purchase,  hold,  or 
convey  real  estate,  except  for  the  purpose  and  in  the  man- 
ner herein  set  forth,  to  wit,— 

First. — Such  as  shall  be  requisite  for  its  convenient 
accommodation  in  the  transaction  of  its  business 

Second. — Such  as  shall  have  been  mortgaged  to  it  to 
secure  loans  previously  contracted  or  for  moneys  due. 

Third. — Such  as  shall  have  been  conveyed  to  it  in  satis- 
faction of  debts. 

Fourth. — Such  as  shall  have  been  purchased  at  sales, 
upon  judgments,  decrees,  or  mortgages  obtained  or  made 
for  debts  due  the  association,  or  for  debts  due  other  per- 
sons, where  said  association  may  have  liens  or  incum- 
brances  of  the  same. 

Any  real  estate  purchased  under  the  second,  third  or 
fourth  paragraphs  of  this  section,  which  has  been  held 
for  a  period  of  more  than  five  years  from  the  date  of  its 
purchase,  shall  be  sold  and  disposed  of  within  a  period 
of  six  months  after  notice  to  the  association  from  the 
Insurance  Commissioner  to  sell  and  convey  the  same: 
Provided,  however,  that  the  Commissioner  may  extend 
the  time  for  such  disposition  if  he  believes  the  interest 
of  the  association  will  suffer  materially  by  a  forced  sale. 

SECTION  23.  Any  money  of  such  association,  over 
and  above  the  unearned  premiums  on  undetermined 
risks  and  such  sums  as  are  required  to  pay  all  accrued 
losses,  may  be  invested  in  the  securities  above  enumerated 
or  loaned  upon  the  security  of  the  same;  or  in  the  stock 
or  other  evidence  of  indebtedness  of  any  solvent,  dividend- 
paying  corporation,  created  under  the  laws  of  this  Com- 
monwealth or  of  any  other  State  of  the  United  States  or 


Mutual  Insurance  Associations.  51 

loaned  upon  the  pledge  of  the  same,  except  its  own  stock 
or  the  stock  of  any  other  insurance  company:  Provided, 
the  current  market  value  of  such  security  shall  be  at 
least  twenty  per  centum  more  than  the  sum  loaned 
thereon.  But  no  such  association  shall  invest  any  of 
its  funds  in  any  unincorporated  business  or  enterprise, 
nor  in  the  stocks  or  evidence  of  indebtedness  of  any 
corporation  the  owners  or  holders  of  which  stock  or 
evidence  of  indebtedness  may  in  any  event  be  or  become 
liable  on  account  thereof  of  any  assessment,  except  for 
taxes;  not  more  than  one-fifth  of  its  capital  shall  be  in- 
vested in  a  single  mortgage,  nor  shall  any  of  its  funds  be 
loaned  on  personal  security  alone.  No  such  association 
shall  invest  in,  acquire  or  hold,  directly  or  indirectly  more 
than  ten  per  centum  of  the  securities  of  any  single  com- 
pany, nor  shall  more  than  ten  per  centum  of  its  assets  be 
invested  in  the  stock  of  a  single  company.  No  such  as- 
sociation shall  enter  into  an  agreement  to  withhold  from 
sale  of  any  of  its  property;  but  the  disposition  of  its  prop- 
erty shall  be  at  all  times  within  the  control  of  its  Board  of 
Directors.  If  any  investment  or  loan  is  made  in  a  man- 
ner not  authorized  by  this  Act,  the  officers  and  directors 
making  or  authorizing  the  same  shall  be  personally  liable 
for  any  loss  occasioned  thereby. 


52 

EXHIBIT  "F." 

AN  ACT. 

REGULATING  POLICIES  OF  INSURANCE  AGAINST  LIABILITY 
ARISING  UNDER  ARTICLE  II  OF  THE  WORKMEN^  COM- 
PENSATION LAW  OF  1913. 

SECTION  i.  Be  it  enacted,  &c._,  That  no  policy  of  insur- 
ance against  liability  arising  under  Article  II  of  The 
Workmen's  Compensation  Law  of  1913  shall  be  made 
unless  the  same  shall  contain  the  agreement  of  the  in- 
surer that,  in  the  event  of  the  failure  of  the  insured 
promptly  to  pay  any  installment  of  compensation  insured 
against,  the  insurer  will  forthwith  make  such  payments  to 
the  injured  employee,  or  the  dependents  of  the  deceased 
employee,  and  that  the  obligation  shall  not  be  affected 
by  any  default  of  the  insured,  after  the  accident,  in  the 
payment  of  premiums  or  in  the  giving  of  any  notices  re- 
quired by  such  policy  or  otherwise.  Such  agreement  shall 
be  construed  to  be  a  direct  promise  to  such  injured  em- 
ployee and  to  such  dependents,  enforceable  by  action 
brought  in  the  name  of  such  injured  employee  and  in  the 
name  of  such  dependents. 

SECTION  2.  No  suit  shall  be  maintained  for  the  collec- 
tion of  premiums  upon  any  such  policy  of  insurance,  un- 
less said  covenant  is  contained  in  said  policy. 

SECTION  3.  No  insurer  shall  pay,  directly  or  indirectly, 
to  any  agent,  broker  or  other  representative,  for  writing 
or  procuring  such  insurance  and  collecting  the  premium 
thereon,  more  than  fifteen  per  cent,  of  the  annual 
premium  on  such  insurance,  either  as  commission,  com- 
pensation, expenses  or  otherwise ;  and  any  insurer  violat- 
ing this  section  of  this  act  shall  for  each  offense  pay  to 
the  Commonwealth  a  penalty  of  Five  hundred  Dollars, 
to  be  recovered  in  an  action  brought  by  the  Insurance 
Commissioner. 


Regulation  of  Insurance  Policies.  53 

SECTION  4.  No  policy  of  insurance  against  liability  aris- 
ing under  said  article  of  said  law  shall  contain  any  limi- 
tation of  the  liability  of  the  insurer  to  an  amount  less  than 
that  payable  by  the  insured  under  said  Article  of  said  Law, 
nor  shall  any  such  policy  contain  any  limitation  of  the 
total  liability  of  the  insurer  because  of  injuries  to  two  or 
more  persons  in  a  single  accident;  nor  shall  any  action  be 
maintained  for  the  collection  of  premiums  on  any  policy 
violating  this  section. 

SECTION  5.  All  acts  and  parts  of  acts  inconsistent  here- 
with are  hereby  repealed. 


54 

EXHIBIT  "G.° 

AN  ACT 

AUTHORIZING  THE  APPOINTMENT  OF  A  COMMISSION  TO  IN- 
QUIRE INTO  THE  CAUSES  AND  RESULTS  OF  INDUSTRIAL  AC- 
CIDENTS, TO  STUDY  ADVANCED  METHODS  FOR  SAFEGUARD- 
ING AGAINST  THE  SAME,  TO  INQUIRE  INTO  THE  SUBJECT 
OF  FAIR  COMPENSATION  FOR  THOSE  INJURED  OR  KILLED 
AS  A  RESULT  THEREOF,  AND  TO  STUDY  THE  OPERATION 
AND  EFFECT  OF  THE  WORKMEN^  COMPENSATION  LAW 
OF  1913,  AND  MAKING  AN  APPROPRIATION  FOR  THE  EX- 
PENSES OF  SAID  COMMISSION. 

SECTION  i.  Be  it  enacted,  etc.,  That  the  Governor  is 
hereby  authorized  to  appoint  a  commission  of  seven  persons, 
to  be  known  as  the  Industrial  Accidents  Commission,— 
two  of  whom  shall  be  employers  of  labor,  two  of  whom  shall 
be  employees  in  either  mines  or  industrial  establishments  of 
this  Commonwealth  or  duly  accredited  representatives 
thereof,  two  of  whom  shall  be  learned  in  the  law,  and  one  of 
whom  shall  be  a  person  skilled  and  experienced  in  making 
investigations, — to  inquire  into  the  causes  and  results  of  in- 
dustrial accidents  in  the  mines,  mills,  factories,  stores  and 
upon  the  railroads,  street  railways,  ships,  wharves  and  in  all 
industrial  establishments,  and  in  all  other  places  where 
men,  women  and  children  are  employed  in  manual  labor  in 
this  Commonwealth;  to  study  the  most  advanced  methods 
for  safeguarding  against  these  accidents ;  to  inquire  into  the 
subject  of  fair  compensation  for  those  who  are  injured  in 
these  accidents  and  for  the  families  of  those  who  shall  be 
killed  as  a  result  thereof ;  and  to  study  the  operation  and  ef- 
fect of  the  Workmen's  Compensation  Law  of  1913. 

SECTION  2.  The  chairman  of  said  commission  shall  be 
designated  by  the  Governor,  and  the  person  named  on  said 
commission  as  a  skilled  and  experienced  investigator  shall 
be  the  secretary  of  the  commission.  The  commission  shall 
have  power  to  employ  such  legal  counsel  and  other  officers 


Industrial  Accidents  Commission.  55 

and  employees  as  it  may  deem  necessary  to  properly  per- 
form its  duties. 

SECTION  3.  The  secretary  of  said  commission  shall  re- 
ceive an  annual  salary  of  two  thousand  four  hundred  dol- 
lars ($2,400),  and  his  actual  necessary  expenses;  and  the 
other  members  of  the  commission  shall  receive  no  compensa- 
tion for  their  services,  but  shall  be  allowed  their  actual  trav- 
eling and  other  necessary  expenses.  The  salaries  of  any 
other  persons  employed  by  the  commission  shall  be  fixed 
by  it. 

SECTION  4.  Said  commission  shall  make  a  full  report  in 
writing  of  its  findings,  together  with  such  recommenda- 
tions as  it  may  deem  proper,  to  the  next  meeting  of  the 
General  Assembly,  which  will  convene  in  January,  one  thou- 
sand nine  hundred  and  fifteen. 

SECTION  5.  The  sum  of  twelve  thousand  dollars  ($12,- 
ooo),  or  so  much  thereof  as  may  be  necessary,  be  and  the 
same  is  hereby  appropriated  for  the  expenses  of  said  com- 
mission. The  said  expenses  shall  be  paid  on  warrant  duly 
signed  by  the  chairman  of  the  commission. 


INDUSTRIAL  ACCIDENT  BOARD 

OF  THE 
STATE  OF  CALIFORNIA 


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